Core Insights - The U.S. Federal Reserve has cut the federal funds rate by 25 basis points for the second time this year, providing fixed income investors with opportunities to adjust their portfolios [1] - The Fed has communicated its interest rate decisions clearly, leading markets to anticipate the rate cut, while acknowledging moderate economic expansion and elevated inflation [2][3] Economic Indicators - Economic activity is expanding at a moderate pace, with job gains slowing and a slight increase in the unemployment rate, which remains low [3] - Inflation has risen since earlier this year and remains somewhat elevated, prompting speculation about further rate cuts before 2026 [3] Investment Strategies - Investors are encouraged to consider repositioning fixed income portfolios in light of the current rate environment, with Vanguard offering various bond ETF options [4][5] - Vanguard's intermediate bond ETFs, such as BIV, VGIT, and VCIT, feature low expense ratios, making them attractive for investors [6][9] Active Management Options - Vanguard offers nine actively managed fixed income funds that can adapt to changing interest rates, allowing investors to avoid the stress of rate fluctuations [7] - For maximizing income in a declining rate environment, options like the Vanguard Core-Plus Bond ETF (VPLS) and the Vanguard High-Yield Active ETF (VGHY) are recommended [8]

Alex Wong / Getty Images Fed Chair Jerome Powell said that a rate cut in December wasn't a done-deal. Key Takeaways Federal Reserve Chair Jerome Powell said it was "not a foregone conclusion" that the Fed will cut interest rates in December. Before Powell's press conference, financial markets had priced in a 90% chance of a December rate cut, which fell below 60% Wednesdsay afternoon. The Federal Reserve's policy committee won't necessarily cut interest rates in December, contrary to what financial ...

Thank you. Colobby Smith with the New York Times. So much of the rationale for cutting interest rates even as inflation moves away from the 2% target seems to be, you know, that there are these mounting downside risks to the labor market.But if those don't materialize and the labor market either stabilizes around current employment levels or even starts to strengthen somewhat, how would that change your perception of how much interest rates need to fall from here. Would you then be a bit more concerned abou ...

Core Points - Federal Reserve Chair Jerome Powell indicated that another rate cut in December is not guaranteed, highlighting differing views among Fed governors regarding inflation risks and labor market conditions [1][2] - The Fed has reduced its benchmark interest rate by 0.25 percentage points to a range of 3.75% to 4%, citing cooling labor conditions and persistent inflation [2] - Powell noted that while inflation has decreased from 2022 highs, recent price pressures in goods categories have emerged, leading to an upward tilt in near-term inflation risks [3] - The Fed plans to end its balance sheet runoff, concluding "quantitative tightening" on December 1, after reducing its securities holdings by $2.2 trillion over the past three and a half years [4] - Powell emphasized that the Fed will remain data-dependent and is prepared to respond to economic developments without a preset policy course [5]

RT Investing.com (@Investingcom)*US TWO-YEAR TREASURY YIELD JUMPS 9BPS WITH DECEMBER CUT IN DOUBT🇺🇸🇺🇸 https://t.co/XDbd3Evaaf ...

‼️ POWELL: Another cut in December is far from assured ...

There were two dissenters from the Federal Reserve's decision to lower the federal funds rate by a quarter percentage point on Wednesday, in two different directions.Federal Reserve Governor Stephen Miran instead called for a half-point cut, while Kansas City Fed President Jeffrey Schmid voted for no decrease.Heather Long, chief economist at Navy Federal Credit Union, called two dissents "unusual," particularly because one wanted a deeper cut and the other wanted no change."Powell will have to use all of hi ...

With that Fed decision. Here's Mike McKay. A divided Fed cuts their benchmark lending rate by a quarter percentage point and says they are going to end cut December 1st.There are two dissents as policymakers reset the target range to three, three quarters and 4%. No surprise, Steven Byron dissents in favor of a 50 basis point cut as President Trump wants. And Kansas City Fed President Jeffrey Schmitt dissents on the other side in favor of no move.The Fed's administered rates for interest on reserves and the ...

Market Trends - Bitcoin and Ethereum are not significantly affected by the central bank's interest rate cut [1]

Core Points - The Federal Reserve has cut interest rates by a quarter point for the second consecutive meeting, lowering the rates to a range of 3.75% to 4%, marking the first time since 2022 that rates have dipped below 4% [1][5] - Policymakers are divided on the decision, with some advocating for caution due to potential inflation impacts from tariffs, while others believe that inflation effects will be temporary and support aggressive rate cuts to stimulate labor market growth [2] - Stephen Miran, the newest Fed governor, voted against the quarter-point cut, advocating instead for a half-point reduction, while Jeffrey Schmid opposed the decision, preferring rates to remain unchanged due to inflation concerns [3][9] Economic Context - The decision to cut rates was influenced by economic reports, including a Consumer Price Index (CPI) increase to 3% in September, which was slightly lower than expected, facilitating the rate cut [6] - The ongoing government shutdown has affected data collection and analysis by agencies like the Bureau of Labor Statistics, raising concerns about the availability of future economic reports, including the October inflation report [7]