minhducyahoo
New member
During the latest FOMC last Wednesday
the FED said that interest rate increases are coming to an end, but that rates will remain high for some time to ensure inflation can return to target (by 2026).
Current Interest Rate projection
Federal Funds Effective Rate (From 2000 to Today)
Question:
Would it make sense to invest in long-term bonds now to take advantage of lower interest rates in the future?
Of course it is not a given that history will repeat itself, like from 2007 to 2008, but I believe that the current interest rate cannot be maintained for too long in the future given the effects on the economy of such a high rate and that sooner or later it will have to be lowered.
Fed Signals Higher-for-Longer Rates With Hikes Almost Finished (Bloomberg)
https://www.bloomberg.com/news/arti...-hikes-almost-finished?embedded-checkout=true (no paywall)
the FED said that interest rate increases are coming to an end, but that rates will remain high for some time to ensure inflation can return to target (by 2026).
Current Interest Rate projection
Federal Funds Effective Rate (From 2000 to Today)
Question:
Would it make sense to invest in long-term bonds now to take advantage of lower interest rates in the future?
Of course it is not a given that history will repeat itself, like from 2007 to 2008, but I believe that the current interest rate cannot be maintained for too long in the future given the effects on the economy of such a high rate and that sooner or later it will have to be lowered.