Fed Scrambles To Revise 2023 Projections As US Economy Surges Beyond Expectations
Portfolio Pulse from Piero Cingari
The U.S. economy has outperformed expectations, leading Federal Reserve officials to consider doubling their 2023 growth projections. Positive indicators include consumer spending and residential investment. The Atlanta Fed estimates a 5.6% annualized expansion in Q3. This could lead the Fed to revise its 2024 interest-rate cut projections. The new projections are expected to be around 1.8% to 2%, with lower unemployment rate predictions. The iShares 1-3 Year Treasury Bond ETF (NASDAQ:SHY) is 0.4% lower in September.
September 06, 2023 | 12:40 pm
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The iShares 1-3 Year Treasury Bond ETF (NASDAQ:SHY) is 0.4% lower in September, potentially due to the strong performance of the U.S. economy and the Fed's potential revision of its growth projections.
The strong performance of the U.S. economy and the potential revision of the Fed's growth projections could be influencing the performance of the iShares 1-3 Year Treasury Bond ETF (NASDAQ:SHY). As the economy performs well, investors may be moving their investments from bonds to other assets, leading to a decrease in the price of the ETF.
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