Russell Investments: Expects the Fed to Begin Tapering or End Loose Monetary Policy in Early 2026, Terminal Rate at 3.25% to 3.5%

By: theblockbeats.news|2025/12/09 07:15:57
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BlockBeats News, December 9th - In a report, Paul Eitelman, Chief Investment Strategist at Russell Investments, said that the Federal Reserve's rate decision on Wednesday appears to be a tough call, with the FOMC divided on how much "insurance" to provide to the economy — a rare combination of solid growth but weak job gains. Russell Investments expects the Fed to proceed with a "hawkish" 25-basis-point rate cut, indicating that the Fed's language on the future rate path may remain cautious.

Eitelman stated: "We expect the Fed to slow down or pause the easing cycle in early 2026, with a terminal rate of 3.25% to 3.5%." He also noted that the current 10-year Treasury yield is at 4.1%, higher than Russell Investments' fair value estimate, supporting a strategic allocation of duration risk in portfolios. (Golden Finance)

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