The Fed fund futures forward curve is showing an expected rate cut by the US FOMC of 25-basis points Thursday afternoon.
There is growing chatter about how the expected rise in inflation following the US presidential election will do away with thoughts of continued rate cuts.
However, the president-elect is a fan of low interest rates, even negative rates, and has talked of putting himself in charge of making rate decisions.
The November 2-day meeting of the US Federal Open Market Committee (FOMC, the Fed) concludes Thursday afternoon. At that time, 14:00 (ET), Fed Chairman Jay Powell will announce the latest move on the Fed fund rate. Not surprisingly, the debate over this month’s meeting has been pushed off center stage by the US presidential election held this past Tuesday. The last couple days I’ve had a number of questions come in asking about what the Fed might do this month, with my standard answer being it hasn’t changed its short-term game plan, though the long-term strategy could be altered in ways thought unimaginable in the not-too-distant past that now seems an eternity ago.
