According to a Reuters poll, 50 of 100 economists expect the Federal Reserve to cut the federal funds rate to a range of 3.25% -3.5% in Quarter 1 of 2026; another 89 economists said the Fed expects to cut the federal funds rate by 25 basis points to a range of 3.5% -3.75% on Dec. 10.
The Federal Reserve's decision to halt its balance sheet cuts after falling bank reserves suggests officials are relying more on the federal funds rate, the main tool for monetary policy and a measure of liquidity in the financial system. The Fed said on Wednesday it would stop reducing its Treasury holdings from December 1 after weeks of high short-term money market rates. While the Fed said it would continue to reduce its holdings of mortgage-backed securities and reinvest maturing funds in tr...
On September 26th, Dallas Federal Reserve President Logan said that the Federal Reserve should abandon the federal funds rate as a benchmark for the execution of monetary policy and instead consider the overnight rate linked to the more robust US Treasury collateral lending market. Logan believes that the federal funds rate target is outdated, and the connection between the rarely used interbank market and the overnight money market is fragile and could suddenly break. She said that updating the...
The Federal Reserve should move away from using the federal funds rate as a benchmark for monetary policy and instead consider an overnight rate tied to a more robust market for US Treasury collateral lending, according to Dallas Federal Reserve President Logan, who argued that the target for the federal funds rate is outdated and rarely makes...
Federal Reserve Logan: Discussions should continue to determine whether it is still the best option to continue communicating the federal funds rate target through a range form.
Federal Reserve meeting notes: Several participants said the current target range for the federal funds rate may not be far from its neutral level.
December federal funds rate futures rose 6 basis points, suggesting that the Federal Reserve will cut interest rates by 65 basis points this year.
July 15, US President Trump: Consumer prices are low, the federal funds rate should be cut immediately. The Federal Reserve should cut interest rates by 3 percentage points.
President Trump: Consumer prices are low, and the federal funds rate should be lowered immediately.
Federal Reserve meeting notes: All participants agreed that it was appropriate to maintain the federal funds rate at its current target range.