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)
