By James Ong, Director, Derivative Portfolio Management, and Marques Mercier, Senior Portfolio Manager and Head of Global Government Funds in Global Liquidity, Invesco Fixed Income
The Federal Reserve (Fed) cut interest rates by 25 basis points Wednesday to a range between 1.75% and 2%, as widely expected by markets. However, the Fed's economic projections showed that the median Federal Open Market Committee (FOMC) member does not expect to cut rates again this year, marking potential disagreement among FOMC members and with markets; the bond market is currently pricing an additional rate cut this year