Opinion: Fed's Rate Cut Once Again Will Benefit US Bond Holders

On September 17th, Harley Bradley, the Co-Head of Global Rates at Insight Investment, stated in a report that the rate cut environment might bring good news to those who have invested in US bonds through globally diversified fixed income portfolios. Although tariffs still have the potential to lead to higher inflation, the Fed is scheduled to cut rates on Wednesday. Given the relatively stubborn inflation in the US, the market will pay close attention to the Fed's latest dot plot forecast for rate cuts beyond September. While inflation may complicate the situation, it is believed that the Fed will be willing to overlook inflation above the target in order to safeguard the labor market. (FX678)