Starting with a bang: PIMCO's Wilding and Boxer share analysis following Fed 0.5% interest rate cut
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PIMCO's Tiffany Wilding and Allison Boxer analyze the Fed's 0.5% interest rate cut on September 19, 2024; this marks the first cut since 2020; the Fed's new median projection for the policy rate by 2025 is 3.25%-3.5%, 150 bps lower than current levels; they believe the Fed will continue to cut rates in 25-bp increments; the Fed's unemployment projection for year-end 2024 is now 4.4%, up from 4.0%, while core inflation is projected at 2.6%, down from 2.8%; Governor Michelle Bowman dissented for a smaller cut, marking the first dissent since 2005; the Fed's actions suggest a shift towards a more normal economy; intermediate-maturity bonds may outperform cash during this cutting cycle.

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https://ifamagazine.com/starting-with-a-bang-pimcos-wilding-and-boxer-share-analysis-following-fed-0-5-interest-rate-cut/ nostr.fmt.wiz.biz