The FOMC eased US policy rates:
Recent indicators suggest that economic activity has continued to expand at a solid pace. Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the Committee’s 2 percent objective but remains somewhat elevated.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate.
In support of its goals, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Thomas I. Barkin; Michael S. Barr; Raphael W. Bostic; Michelle W. Bowman; Lisa D. Cook; Mary C. Daly; Philip N. Jefferson; Adriana D. Kugler; and Christopher J. Waller. Voting against the action was Beth M. Hammack, who preferred to maintain the target range for the federal funds rate at 4-1/2 to 4-3/4 percent.
…and the projected dotplot now shows a terminal rate of three-ish:
Fed Dotplot 2024-12-18
Equity markets were unhappy:
The Dow Jones Industrial Average fell 1,123.03 points, or 2.58%, to 42,326.87, the S&P 500 lost 178.45 points, or 2.95%, to 5,872.16 and the Nasdaq Composite lost 716.37 points, or 3.56%, to 19,392.69.
The Dow suffered its 10th straight session of declines, its longest streak of daily losses since an 11-session skid in October 1974. The Dow and S&P saw their biggest one-day percentage decline since Aug. 5 and the Nasdaq saw its biggest daily decline since July 24.
U.S. Treasury yields moved higher after the statement as the benchmark U.S. 10-year note touched its highest level since May 31 at 4.518%.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.7978 % | 2,273.6 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.7978 % | 4,360.8 |
| Floater | 7.67 % | 7.78 % | 33,790 | 11.69 | 4 | -0.7978 % | 2,513.1 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0057 % | 3,629.2 |
| SplitShare | 4.76 % | 4.44 % | 62,538 | 1.16 | 7 | 0.0057 % | 4,334.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0057 % | 3,381.6 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.4236 % | 2,883.8 |
| Perpetual-Discount | 5.95 % | 6.13 % | 53,832 | 13.65 | 32 | -0.4236 % | 3,144.6 |
| FixedReset Disc | 5.41 % | 6.58 % | 103,937 | 12.88 | 53 | 0.8550 % | 2,778.9 |
| Insurance Straight | 5.90 % | 6.01 % | 64,821 | 13.93 | 21 | -0.5281 % | 3,067.4 |
| FloatingReset | 6.46 % | 6.20 % | 37,153 | 13.08 | 4 | 0.5300 % | 3,328.1 |
| FixedReset Prem | 6.02 % | 5.60 % | 202,752 | 13.77 | 9 | 0.1041 % | 2,600.7 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.8550 % | 2,840.6 |
| FixedReset Ins Non | 5.14 % | 6.03 % | 85,073 | 13.81 | 14 | 0.1761 % | 2,855.6 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| PWF.PR.G | Perpetual-Discount | -2.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 23.68 Evaluated at bid price : 23.95 Bid-YTW : 6.25 % |
| CCS.PR.C | Insurance Straight | -2.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 20.25 Evaluated at bid price : 20.25 Bid-YTW : 6.21 % |
| CU.PR.H | Perpetual-Discount | -2.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 21.50 Evaluated at bid price : 21.50 Bid-YTW : 6.17 % |
| PWF.PR.A | Floater | -2.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 12.92 Evaluated at bid price : 12.92 Bid-YTW : 7.51 % |
| GWO.PR.N | FixedReset Ins Non | -1.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 15.00 Evaluated at bid price : 15.00 Bid-YTW : 6.89 % |
| PWF.PR.E | Perpetual-Discount | -1.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 22.22 Evaluated at bid price : 22.50 Bid-YTW : 6.20 % |
| IFC.PR.I | Insurance Straight | -1.79 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 22.15 Evaluated at bid price : 22.50 Bid-YTW : 6.01 % |
| MFC.PR.C | Insurance Straight | -1.54 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 19.85 Evaluated at bid price : 19.85 Bid-YTW : 5.71 % |
| CU.PR.J | Perpetual-Discount | -1.41 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 19.51 Evaluated at bid price : 19.51 Bid-YTW : 6.16 % |
| TD.PF.E | FixedReset Disc | -1.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 23.36 Evaluated at bid price : 23.95 Bid-YTW : 6.01 % |
| GWO.PR.Q | Insurance Straight | -1.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 21.41 Evaluated at bid price : 21.41 Bid-YTW : 6.04 % |
| IFC.PR.F | Insurance Straight | -1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 21.96 Evaluated at bid price : 21.96 Bid-YTW : 6.06 % |
| CU.PR.G | Perpetual-Discount | -1.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 19.10 Evaluated at bid price : 19.10 Bid-YTW : 5.95 % |
| POW.PR.A | Perpetual-Discount | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 23.00 Evaluated at bid price : 23.27 Bid-YTW : 6.12 % |
| BN.PR.B | Floater | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 12.15 Evaluated at bid price : 12.15 Bid-YTW : 7.90 % |
| PWF.PR.L | Perpetual-Discount | -1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 21.08 Evaluated at bid price : 21.08 Bid-YTW : 6.15 % |
| FTS.PR.J | Perpetual-Discount | -1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 20.55 Evaluated at bid price : 20.55 Bid-YTW : 5.84 % |
| BN.PF.C | Perpetual-Discount | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 19.30 Evaluated at bid price : 19.30 Bid-YTW : 6.32 % |
| ENB.PR.B | FixedReset Disc | 1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 18.60 Evaluated at bid price : 18.60 Bid-YTW : 7.30 % |
| ENB.PF.K | FixedReset Disc | 1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 22.13 Evaluated at bid price : 22.55 Bid-YTW : 6.92 % |
| BN.PR.X | FixedReset Disc | 1.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 16.60 Evaluated at bid price : 16.60 Bid-YTW : 7.22 % |
| ENB.PR.N | FixedReset Disc | 1.16 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 22.14 Evaluated at bid price : 22.66 Bid-YTW : 6.59 % |
| IFC.PR.C | FixedReset Ins Non | 1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 21.40 Evaluated at bid price : 21.72 Bid-YTW : 6.22 % |
| PWF.PR.S | Perpetual-Discount | 1.32 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 19.90 Evaluated at bid price : 19.90 Bid-YTW : 6.13 % |
| BN.PF.J | FixedReset Disc | 1.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 22.62 Evaluated at bid price : 23.31 Bid-YTW : 6.58 % |
| POW.PR.C | Perpetual-Discount | 1.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 24.08 Evaluated at bid price : 24.34 Bid-YTW : 6.06 % |
| FTS.PR.K | FixedReset Disc | 1.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 20.30 Evaluated at bid price : 20.30 Bid-YTW : 6.44 % |
| CM.PR.P | FixedReset Disc | 1.54 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.13 Bid-YTW : 3.81 % |
| MFC.PR.L | FixedReset Ins Non | 1.55 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 22.25 Evaluated at bid price : 22.90 Bid-YTW : 5.83 % |
| FFH.PR.H | FloatingReset | 1.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 21.80 Evaluated at bid price : 21.80 Bid-YTW : 6.63 % |
| IFC.PR.G | FixedReset Ins Non | 2.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 22.81 Evaluated at bid price : 23.80 Bid-YTW : 5.92 % |
| CU.PR.C | FixedReset Disc | 4.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 20.95 Evaluated at bid price : 20.95 Bid-YTW : 6.48 % |
| BIP.PR.F | FixedReset Disc | 5.18 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 22.42 Evaluated at bid price : 23.14 Bid-YTW : 6.55 % |
| FFH.PR.I | FixedReset Disc | 33.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 21.61 Evaluated at bid price : 22.00 Bid-YTW : 6.46 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| CM.PR.P | FixedReset Disc | 339,166 | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 25.13 Bid-YTW : 3.81 % |
| PWF.PR.Z | Perpetual-Discount | 54,400 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 21.35 Evaluated at bid price : 21.35 Bid-YTW : 6.13 % |
| CU.PR.C | FixedReset Disc | 48,500 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 20.95 Evaluated at bid price : 20.95 Bid-YTW : 6.48 % |
| TD.PF.C | FixedReset Disc | 46,700 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 23.67 Evaluated at bid price : 24.76 Bid-YTW : 5.30 % |
| MFC.PR.N | FixedReset Ins Non | 33,700 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 20.95 Evaluated at bid price : 20.95 Bid-YTW : 6.34 % |
| ENB.PR.T | FixedReset Disc | 32,939 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-12-18 Maturity Price : 20.85 Evaluated at bid price : 20.85 Bid-YTW : 6.98 % |
| There were 16 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| ENB.PR.H | FixedReset Disc | Quote: 20.44 – 22.22 Spot Rate : 1.7800 Average : 0.9622 YTW SCENARIO |
| CCS.PR.C | Insurance Straight | Quote: 20.25 – 21.40 Spot Rate : 1.1500 Average : 0.7644 YTW SCENARIO |
| PWF.PR.E | Perpetual-Discount | Quote: 22.50 – 23.50 Spot Rate : 1.0000 Average : 0.6680 YTW SCENARIO |
| ENB.PF.E | FixedReset Disc | Quote: 18.84 – 19.95 Spot Rate : 1.1100 Average : 0.8817 YTW SCENARIO |
| PVS.PR.K | SplitShare | Quote: 25.07 – 25.88 Spot Rate : 0.8100 Average : 0.5998 YTW SCENARIO |
| GWO.PR.L | Insurance Straight | Quote: 23.85 – 25.00 Spot Rate : 1.1500 Average : 0.9704 YTW SCENARIO |