THE FED EFFECT: how does the Fed hike affect fixed income sectors?

The time has come…

As was widely expected, the Federal Open Market Committee (FOMC) opted to raise the federal funds rate target range from 0.25% to 0.5% to 0.5% to 0.75%, only the second rate increase in the last 10 years. The FOMC now expects three rate hikes in 2017, two or three in 2018 and three in 2019 and has upped its longer-run rate target from 2.9% to 3%. Here, Standish’s portfolio managers provide their thoughts on how the Fed’s decision to raise rates will affect the various types of fixed income assets they manage.

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