Page 2 - Fed Pivot News Today

Investors who transition from cash-like Treasurys into long-dated bonds ahead of the Fed cuts will earn higher returns, Bernstein wrote.

The Taylor Rule framework indicates that the fed funds rate should be at 4.5% by now, Apollo's chief economist Torsten Sløk wrote.

Yields on the 10-year note in the UK, Germany, and Canada are higher than where they where before the Fed announced a pause in rate hikes.

"The labor market continues to show signs of resilience despite the rapid pace of interest rate hikes that the Fed initiated close to two years ago."

Stocks slid as hopes for a quick monetary pivot were tested, but bank equities gained ground on better-than-anticipated earnings results.

"When the time is right to begin lowering rates, I believe it can and should be lowered methodically and carefully," Fed's Christopher Waller said.

Markets will likely focus on Trump's foreign policy and trade priorities, which include a 10% tariff, Deutsche Bank said.

"Maybe we have a new version of Lord Acton's law: easy money corrupts, and really easy money corrupts absolutely."

Investors are also looking ahead to the release of consumer price data on Thursday.

US Treasury yields remained over 4% on Tuesday, while oil prices rose roughly 2%.