Financial Times FT.com

Future is clear but uncertain amid turmoil

By Krishna Guha in Washington

Published: August 21 2007 02:13 | Last updated: August 21 2007 02:13

The dramatic decline in the yield on short-term Treasury bills on Monday further strengthened market expectations that the Federal Reserve will soon embark on an aggressive series of interest rate cuts.

By the close of trading the market was pricing in roughly one-and-a-half quarter-point cuts by the Fed’s next scheduled policy meeting on September 18, and three quarter-point cuts by the end of this year.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this