Now that inflation has been running hot for a year, the Fed is talking about increasing the Fed Funds rate and reducing it’s Balance Sheet in an effort to get inflation under control…
Fixed income sought direction in the third quarter as investors absorbed news regarding potential tapering, continued stimulus, the debt ceiling, and an ever present debate regarding the magnitude and duration of inflationary forces.
Interest rates climbed in the first quarter as markets weighed a strengthening economy, potential inflation, and continued large scale monetary and fiscal support.
Even though treasury yields moved higher during the final quarter of 2020, annual fixed income returns remained strong across a broad spectrum of sectors and credit quality.
