Fed Swaps No Longer Fully Price In Rate Cut Before December
Portfolio Pulse from Benzinga Newsdesk
The Federal Reserve swaps market no longer fully prices in a rate cut before December, indicating a shift in market expectations regarding monetary policy.
June 07, 2024 | 12:36 pm
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The Federal Reserve swaps market no longer fully pricing in a rate cut before December could lead to increased volatility in the SPY ETF as investors adjust their expectations regarding interest rates.
The SPY ETF, which tracks the S&P 500, is sensitive to changes in interest rate expectations. The news that the Fed swaps market no longer fully prices in a rate cut before December could lead to increased market volatility as investors adjust their positions based on the new interest rate outlook.
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