Fed Tightening Ahead? This Dividend ETF Offers Protection.
With odds of a 2026 rate hike getting shorter, the Fidelity Dividend ETF For Rising Rates is a fund to consider.
Fed Tightening Ahead? This Dividend ETF Offers Protection.
Overview
The first Federal Reserve meeting under new Chairman Kevin Warsh came and went with the central bank, as expected, not changing rates. But something potentially ominous is brewing beneath the surface of the no-change headlines.
Half of Fed officials polled expect the fed funds rate to exceed the current range of 3.5% to 3.75% by the end of this year. On predictions market operator Kalshi, fewer than one in five traders expect the Fed to cut rates this year, but nearly two-thirds are buying contracts that "win" if the central bank hikes before 2027. Translation: Odds of a rate hike are shortening while odds of a cut are getting longer.
This dividend ETF could offer shelter from a rising rates storm. Image source: Getty Images.
Details
Source
Originally published at www.fool.com.
