Wells Fargo: It is expected that after the debt ceiling issue of the Trump administration is resolved, SOFR will be higher than the federal funds rate
Wells Fargo strategists Angelo Manolatos and Jack Boswell stated in a report that once the debt ceiling issue is resolved and the Treasury releases a large supply of short-term bills to rebuild its cash balance, the secured overnight financing rate (SOFR) is likely to be more consistently equal to or above the federal funds rate later in 2025. The Wells Fargo economic team expects the debt ceiling resolution to be reached before August 1 (with Congress raising it), but the deadline (X-Date) is around early September
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