0717 GMT - Investors have aligned their expectations more closely to those of the Federal Reserve in the last few weeks, says Felipe Villarroel, partner in portfolio management at TwentyFour Asset Management. "U.S. Treasury markets are now pricing in two 25 basis-point rate cuts in November and December, in line with the median dot plot," he says in a note. The Fed's base case is a soft landing--with inflation falling without damaging the economy and labor market--, with growth moving to its potential rate of close to 2%, he says. This warrants a neutral Fed funds rate of around 3%, he says. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
October 08, 2024 03:17 ET (07:17 GMT)
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