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Fed typically ‘cuts swiftly and does not disappoint market expectations,’ says BAML
Sharpen the Federal Reserve’s rate-cutting sickle. Market expectations are growing for a cut to benchmark interest rates, which currently stand at a range between 2.25% and 2.50%, and strategists at Bank of America don’t think that the market is going to be disappointed. In a report dated June 6, Mark Cabana, rates strategist, Joseph Song, U.S. economist, and currency strategist Adarsh Sinha at BAML, said history offers a clear guide on how rate cuts tend to play out in the coming six-month period once the market starts to price in a rate reduction. Presently, Wall Street is pricing in a 65 basis point cut by the ... (full story)