Russell Investments anticipates the Federal Reserve will implement a hawkish 25 basis point rate cut in December, according to Paul Eitelman, Senior Director and Chief Investment Strategist for North America. The decision comes amid a unique economic environment of strong growth paired with weak job growth. Eitelman suggests the Fed will maintain cautious language about future rate directions. Looking ahead, Russell Investments projects the Fed may slow or halt its easing cycle by early 2026, with the terminal interest rate expected to settle between 3.25% and 3.5%. Eitelman also notes the current 10-year Treasury yield stands at 4.1%, exceeding fair value estimates, and advises a strategic allocation of duration risk in investment portfolios.