Fed Funds Rate

Fed Funds Rate Goldman Sachs expects the Fed to implement two 25 basis point rate cuts in 2025, with an additional cut projected for 2026. How will the Fed navigate potential increases in trade tariffs under the Trump administration? Image: Goldman Sachs Global Investment Research

Fed Funds Futures

Fed Funds Futures Markets are still pricing in Fed rate cuts for 2025, but expectations have been scaled back due to persistent inflation concerns. Image: Deutsche Bank

Implied Fed Funds Target Rate

Implied Fed Funds Target Rate The Fed has revised its 2025 projections, now anticipating only two rate cuts instead of four, with future reductions dependent on the progress made in managing inflation. Image: Bloomberg

Interest Rates – Fed Funds Rate

Interest Rates – Implied Fed Funds Target Rate The Fed is likely to cut rates by 25 basis points today, but projections for 2025 indicate a more gradual easing strategy, aiming to boost the economy while keeping inflation in check. Image: Bloomberg

Fed Funds Futures

Fed Funds Futures The market has scaled back its outlook for Fed rate cuts in 2025, with current projections showing three cuts, down from earlier forecasts. Image: Bloomberg

Fed Funds Rate and Fed Funds Futures

Fed Funds Rate and Fed Funds Futures Deutsche Bank’s forecast for the federal funds rate is notably more hawkish compared to many mainstream projections. In light of the election results, the Fed may hold interest rates above 4% throughout 2025. Image: Deutsche Bank

Fed Funds vs. 2-Year U.S. Treasury Yield (Leading Indicator)

Fed Funds vs. 2-Year U.S. Treasury Yield (Leading Indicator) The current 2-year U.S. Treasury yield, sitting below the fed funds rate, indicates that the Fed’s monetary policy is restrictive. Historically, the 2-year yield tends to lead the fed funds rate by approximately 20 weeks. Image: Bloomberg

Market-Implied Path of the Fed Funds Rate

Market-Implied Change in Fed Funds Rate Traders are anticipating a total of 75 bps in interest rate cuts by the Federal Reserve over the next 12 months. Image: Goldman Sachs Global Investment Research

Interest Rates – Fed Funds Futures Curve

Interest Rates – Fed Funds Futures Curve After the Federal Reserve’s recent meeting, the slope of the fed funds futures curve has increased slightly, indicating a shift in market expectations regarding future interest rate movements. Image: The Daily Shot

U.S. Money Market Fund Assets and Fed Funds Rate

U.S. Money Market Fund Assets and Fed Funds Rate The current environment suggests that a substantial amount of capital is poised to flow back into equity markets, driven by expectations of favorable economic conditions and monetary policy adjustments. Image: Goldman Sachs Global Investment Research