Bond Markets React to Fed Cut | Presented by CME Group
Bloomberg Television·2025-09-25 15:03
In the fall of 2024, the Federal Reserve cut the Fed funds rate by a full 100 base points. Conventional wisdom suggests that lower short-term rates should drag down longerterm yields. But that's not what happened.The 10-year Treasury yield actually rose, going from 3.6% up to 4.7% over the same period. Analysts were quick to call the rate cuts premature, arguing that inflation hadn't been fully defeated and that the Fed was risking another wave by easing policy too soon. 10 months on, the bond market skepti ...