Perspectives

  • Monthly Macro Monitor: December 2024

    • Key macroeconomic data measures released during the month were largely consistent with consensus estimates.
    • As expected, the Federal Reserve cut the federal funds rate another 25 basis points at its December meeting, bringing total rate cuts to-date through this easing cycle to 100 basis points.
    • In December, the interest rate curve steepened meaningfully, driven primarily by the significant increase in longer term interest rates as the market repriced to the Fed’s updated Summary of Economic Projections that showed fewer anticipated rate cuts in 2025 and 2026.
    • Agency MBS spreads to benchmark rates were largely unchanged from the prior month.
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