December 16th, 2024
The Fed will likely cut rates this week by 25bps but may make next year's cuts in interest rates more conditional
The market expects the Fed to signal that the 'normal' level of policy rates are drifting higher
The recent move higher in the US 10-year shows the market's concerns about debt and fiscal policy sustainability
The ECB cut rates last week but may fear cutting too aggressively in the future
The ECB might compound Europe's economic woes by cutting rates too low, triggering a deflationary mindset in the economy
