The Federal Reserve’s upcoming interest rate decision has bond investors on edge, with the market divided over the size of the expected cut. Treasuries have seen a five-month rally, driving yields to two-year lows. However, this optimism could lead to significant losses if the Fed chooses a smaller 25-basis-point reduction instead of the larger cut some are hoping for. The decision is highly anticipated, as it will set the tone for the Fed’s rate-cutting cycle in an uncertain economic environment.
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Fed's Rate Cut Dilemma: Market Braces for Potential Shock
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