Fed Meeting Preview: Bank Of America Expects One More Interest Rate Hike, And Here's When It's Going To Happen
Portfolio Pulse from Piero Cingari
The Federal Open Market Committee's two-day meeting is set to conclude on Wednesday, with the Federal Reserve expected to keep interest rates steady within the 5.25% to 5.5% range. However, Bank of America analysts Mark Cabana and Michael Gapen predict another rate increase in December. They argue that the Fed risks lagging behind real growth and inflation unless it adjusts its approach in response to higher rates. Yields on the 10-year Treasury bond, monitored through the US 10-Year Treasury Note ETF (NYSE:UTEN), have surged from 3.85% to 4.85% since the beginning of the year.
October 31, 2023 | 4:23 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
The US 10-Year Treasury Note ETF (NYSE:UTEN) could be impacted by the predicted rate increase in December. The ETF has seen a surge in yields from 3.85% to 4.85% since the beginning of the year.
The predicted rate increase in December could impact the US 10-Year Treasury Note ETF (NYSE:UTEN), as higher interest rates generally lead to lower bond prices. However, the ETF has already seen a significant surge in yields this year, which could potentially mitigate some of the impact of a rate increase.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75