Fed's Rate Plan Rattles Bonds

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Fed's Rate Plan Rattles Bonds

B
Benzinga

1 Views • Aug 18, 2023

Description

Yearly returns in the Treasury market went negative this week as the market sold off due to concerns that the Federal Reserve may have to keep rates high to contain inflation. Ryan Murphy, director of fixed-income business development at Capital Group, reassures investors that bond returns will accumulate over time. Capital Group, recognized as a new bond leader, has attracted $100 billion in funds over the past five years. Recent volatility in interest rates has affected yearly gains in many bond funds as the Fed continues to warn about the challenges of meeting the 2% annual inflation target.