Former Fed President Bullard Dismisses Recession Alarms, Foresees Possible Rate Hikes
Portfolio Pulse from Piero Cingari
Former St. Louis Fed chief James Bullard dismissed exaggerated recession predictions and spoke about the U.S. economy's unexpected resilience and the potential for higher interest rates. Bullard emphasized that the pace of economic expansion could necessitate further interest rate hikes. Markets are currently pricing in a 13.5% chance of a rate hike in September and a 35% chance of a hike by November's FOMC meeting. The yield on the U.S. 2-year Treasury note, also tracked by the US Treasury Note ETF (NYSE:UTWO), traded around 5% on Wednesday.
August 23, 2023 | 1:21 pm
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The yield on the U.S. 2-year Treasury note, tracked by the US Treasury Note ETF (NYSE:UTWO), traded around 5%. The potential for higher interest rates could impact the performance of UTWO.
The US Treasury Note ETF (UTWO) tracks the yield on the U.S. 2-year Treasury note. If interest rates rise, the yield on the 2-year Treasury note could also rise, which could impact the performance of UTWO. However, the exact impact will depend on a variety of factors, including the pace and magnitude of the rate hikes.
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IMPORTANCE 70
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