Perspectives
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The Fed Report: September 2024
Read More- At its highly anticipated September meeting, the FOMC lowered the target range for the federal funds rate by 50 basis points to 4.75-5.00% “in light of the progress on inflation and the balance of risks.”
- This marks the Fed’s first rate cut since the Covid-fueled financial market dislocation in 2020 and the subsequent quantitative tightening cycle that began in early 2022, which increased the target range for the federal funds rate by over 500 basis points across 11 rate hikes in a little over two years.
- Chair Powell’s remarks emphasized that this 50 basis point reduction is a “recalibration of the Fed’s policy stance” intended to maintain strength in the economy and the job market and that, while yesterday’s decision marked the beginning of an easing cycle, the Fed is “not on any preset course” and will maintain its data-dependent approach to monetary policy decisions on a meeting-by-meeting basis.
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Why Agency MBS: Market Snapshot
Read MoreAgency MBS assets benefit from compelling fundamentals and favorable attributes that make them a critical building block of any investment portfolio.