Fed Cuts Rates but Signals Caution Ahead of December Decision

Nuveen’s Fixed Income Strategy team, led by Tony Rodriguez, analyzes the Federal Reserve’s second consecutive 25 bps rate cut and its implications for investors.

• Policy stance: The Fed reduced rates to 3.75%–4.00% and ended balance sheet runoff but maintained a hawkish tone, leaving December’s decision data-dependent.

• Macro outlook: GDP forecast upgraded to 1.5% for 2025 amid resilient business investment and easing inflation, now projected near 3.2%.

• Investment view: Nuveen favors emerging markets debt, senior loans, and municipal bonds as attractive income opportunities in a moderating rate environment.

For a deeper dive into sector-specific implications and yield opportunities, review the full analysis.