Strategist: The Federal Reserve is expected to implement a hawkish rate cut, with the terminal rate likely between 3.25% and 3.5%

According to Jinshi News, Paul Eitelman, Senior Director and Chief Investment Strategist at Russell Investments, stated in a report that the Federal Reserve is expected to implement a "hawkish" rate cut of 25 basis points, with a terminal rate anticipated to be between 3.25% and 3.5%.

Eitelman pointed out that the current yield on the 10-year U.S. Treasury is 4.1%, which is above Russell Investments' fair value estimate, supporting a strategic allocation of duration risk in the portfolio.