Funds Rate: Executive Officer and Re Planning

funds rate: Possibilities include a single 25 basis-point cut in the federal funds rate for the year at the next policy meeting in July, as well as a rare 50-basis point reduction later this month that kicks off several rounds of easing before the end of the year, according to Market Watch. I'm having a hard time figuring out why they're planning to cut, said Mark Stoeckle, chief executive officer and senior portfolio manager at Adams Funds, told Market Watch, adding that his conversations with management have left them cautiously optimistic about the trajectory of the economy as benchmark stock indexes hit all-time high. The news last week sent the Dow Jones Industrial Average DJIA, -0.09% the S&P 500 index SPX, -0.34% and the Nasdaq Composite index COMP, -0.43% to new highs, but stronger-than-expected U.S. inflation data and a spike in government bond yields in the last couple of days have market participants preparing for a wide range of outcomes in Fed policy over coming months. This is not the traditional environment one expects to trigger interest-rate cuts. Unemployment is below the Fed's maximum employment target, prices are as stable as they have ever been in the history of the country, and the yield on a 30-year Treasury yield is 50 basis points above its all-time low, he wrote, arguing that the Fed is clearly achieving its mandate of maximum unemployment in the context of price stability. Michael O'Rourke, chief market strategist at Jones Trading went as far as to call Powell's testimony surreal, in a recent note to clients. (news.financializer.com). As reported in the news.