Another Fed Cut, But There Is Growing Dissent
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ING Economic and Financial Analysis4.95K FollowersFollow5ShareSavePlay(10min)CommentsSummaryThe Federal Reserve has cut the Fed funds target rate range 25bp to 3.5-3.75%, as widely expected.From May, the Fed will have a new Chair. Kevin Hassett, the current Director of the National Economic Council, is the hotly tipped favourite.In terms of market pricing, the WIRP function on Bloomberg suggests the market is looking for 50bp of additional cuts in 2026.The balance sheet is now on freeze (there is a floor set for bank reserves), and the funds rate is now super close to where it is looking more normal, or at least close to it. Richard Drury/DigitalVision via Getty Images By James Knightley, Chief International Economist, US; Padhraic Garvey, CFA, Regional Head of Research, Americas; and Chris Turner, Global Head of Markets and Regional Head of Research for UK & CEE The Fed cutThis article was written byING Economic and Financial Analysis4.95K FollowersFollowFrom Trump to trade, FX to Brexit, ING’s global economists have it covered. Go to ING.com/THINK to stay a step ahead. We’re sorry we can’t reply to individuals' comments.Content disclaimer: The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument.This publication has been prepared by ING solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. For our full disclaimer please click here.Quick InsightsHow might upcoming Fed leadership changes affect future rate policy?With Kevin Hassett favored as the next Chair and potential new dovish appointees, the Fed's policy stance could shift toward more aggressive rate cuts.What is the market currently pricing for Fed rate cuts in 2026?Markets are pricing in 50bp of additional cuts in 2026, reflecting expectations for a more accommodative stance amid disinflation and labor market softness.How does the Fed's new T-bill buying program impact liquidity and front-end rates?The Fed's reserve management purchases, starting with $40bn, aim to ensure ample reserves, supporting front-end rates and potentially acting as quasi-QE if extended.Recommended For You