Central Banks' Rate Decisions Ahead of Christmas

Several central banks, including the Fed and the Bank of England, are expected to make significant decisions regarding interest rates this week. As central banks approach the neutral rate, speculation arises on how many will opt to pause or implement changes to their monetary policy. The Fed is anticipated to announce a quarter-point rate cut while maintaining cautious messaging, largely influenced by current economic conditions and political scenarios involving the new administration. Market reactions indicate rising Treasury yields, attributed to expectations surrounding these decisions and the potential for a hawkish outlook with respect to future rate adjustments.