THE FED CUTS RATES FOR THE FIRST TIME IN A DECADE: WHAT NEXT?

August 1, 2019

The U.S. Federal Reserve (Fed) cut rates on Wednesday—its first in a decade. While the move has been widely expected, investors are less sure about where the Fed might go from here. Charles C. Tomes, associate portfolio manager on our Global Multi-Sector Fixed Income team, shares his views.

The Fed cuts rates—will there be more to come?

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A rise in interest rates typically causes bond prices to fall. The longer the average maturity of the bonds held, the more sensitive a portfolio is likely to be to interest-rate changes. The yield earned by a portfolio will vary with changes in interest rates.
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