Prediction: The Fed Hikes Rates Once in 2026. Here's What It Means for Bond ETFs.
Kevin Warsh's recent comments give a clear indication of where the central bank is headed next.
Overview
Based on the current macroeconomic picture, I believe the Fed will hike interest rates once before year-end, most likely at the December meeting. It would mark the first hike since the central bank concluded its last cycle in mid-2023.
That hike could shape how bond exchange-traded funds (ETFs) perform for the rest of the year.
The biggest catalyst for the "higher rates in 2026" narrative is, of course, inflation. In May, the year-over-year rate hit a near-term high of 4.2%. While it came back down to 3.5% in June, it's still well above the Fed's 2% long-term target.
Details
Source
Originally published at www.fool.com.
Related Articles
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.