With interest rates likely to fall, investors are advised to stick with fixed income investments. By focusing on exchange-traded funds (ETFs) in intermediate-term bonds, investors can potentially benefit from a boost in total return and manage interest rate volatility effectively. Additionally, municipal bond funds offer attractive income-generating opportunities with yields as high as 3.5%.
One Federal Reserve official warns that interest rates may need to rise instead of being cut to control inflation. Despite progress in lowering inflation, risks remain high due to supply chain issues, geopolitical factors, government spending, and a tight labor market. The official emphasizes caution in easing policy too soon as it could lead to a resurgence of inflation.
