News

Interest Rate Update

Yesterday’s FOMC announcement was uneventful, as evidenced by term rates ending the day unchanged.  However, rate cut expectations for 2026 have been changing quite a bit over the past few weeks.  At the end of December, markets were looking for 2.8 cuts by January 2027 and that has moved down to 1.8 cuts in recent weeks.  The main driver of this repricing has been better than expected US Economic data.  To this point, the updated FOMC statement mentioned that economic growth was “expanding at a solid pace”