State Street Bets on Fed ‘Dramatically’ Cutting Rates Next Year
- Sees 100-200 basis points of easing as growth, inflation slow
- Adds long-duration Treasuries exposure, views yields near peak
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State Street Global Advisors is betting against the higher-for-longer mantra sweeping across global bond markets.
The Wall Street giant is wagering that the Federal Reserve will cut interest rates by at least a full percentage point next year — double what markets are pricing in — as policy makers respond to further slowing in growth and inflation.