Citi Analyst Suggests Betting Against December Fed Rate Cut

According to BlockBeats, on November 6, Citi analyst Jabez Mathai expressed that, given the current market odds, betting against another Federal Reserve rate cut in December appears attractive. The market widely anticipates a 25 basis point rate cut by the Federal Reserve this week. However, considering the recent series of strong economic data, this could potentially be the last rate cut by the Fed this year. Mathai's latest report recommends engaging in a swap trade where traders agree to pay a fixed annualized rate of 4.404% while receiving interest that fluctuates with the Federal Reserve's target rate. This strategy could prove beneficial if the Federal Reserve decides not to cut rates in December, maintaining them between 4.5% and 4.75% until the end of the year.