Traders’ expectations for where the Federal Reserve’s benchmark interest rate will wind up in late 2024 is well above where they saw it heading soon after the collapse of some U.S. regional banks earlier this year, even as they anticipate rate cuts next year.
Federal-funds-futures contracts for December 2024 are now “a long way above” the level seen in the wake of the sudden failure of Silicon Valley Bank earlier this year, said Jim Reid, a strategist at Deutsche Bank Research, in a note emailed Wednesday. They were at 2.695%…
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