Wall Street has a message for the Federal Reserve: You are not done cutting rates.
Even as the central bank lowered borrowing costs last month, it tried to temper expectations that a string of additional moves were imminent. But in the financial markets, it is clear that investors expect more cuts to come.
In bond markets this week, yields on government debt have touched lows not seen since 2016, when a sharp slowdown in growth — and what many now view as a mini-recession — gripped the economy. The decline implies investors have substantially downgraded their expectations for the economy.
View the complete August 8 article by Matt Phillips on The New York Times website here.