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US rate futures price in Fed on hold in January, two cuts in 2025 -LSEG estimates

NEW YORK (Reuters) – Futures on the federal funds rate, which measure the cost of unsecured overnight loans between banks, have priced in that the overnight benchmark rates will remain unchanged at the Federal Reserve’s January policy meeting after the Fed lowered rates by 25 basis points at the end of its two-day meeting on Wednesday.

Rate futures also factored in about 49 bps in cuts in 2025, LSEG calculations showed.

This post appeared first on investing.com







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