TD Securities: Shifts Fed Rate Cut Expectation from March to June, Still Expects Three Rate Cuts This Year
BlockBeats News, February 12th, TD Securities has revised its forecast for the timing of the Fed's next interest rate cut from March to June, still expecting a total of 75 basis points of rate cuts this year, bringing the target rate to 3%. TD Securities expects the Fed to cut rates by 25 basis points in June, September, and December. The team led by TD Securities' Chief U.S. Macro Strategist Oscar Munoz stated that the expected policy easing is not due to a deteriorating economic situation, but rather as a result of inflation gradually returning to target levels, leading the monetary policy to "normalize." Improved employment prospects should allow the Fed to focus on the inflation mandate. The institution also predicts that U.S. bond yields will continue to decline this year, with the 10-year yield expected to drop to 3.75% by the end of the year (previously expected to be 3.5%). (FXStreet)
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