Fed's Goolsbee Signals Multiple Rate Cuts Ahead, Cites Recession Warning Signs As Unemployment Rises
Portfolio Pulse from Piero Cingari
Chicago Federal Reserve President Austan Goolsbee indicated potential interest rate cuts over the next year due to rising unemployment, signaling a shift from inflation to labor market focus. The iShares 20+ Year Treasury Bond ETF (TLT) fell 0.2% as U.S. Treasury bonds edged lower.
September 23, 2024 | 10:54 pm
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The iShares 20+ Year Treasury Bond ETF (TLT) fell 0.2% as U.S. Treasury bonds edged lower following Fed's Goolsbee hinting at potential interest rate cuts due to rising unemployment.
The mention of potential interest rate cuts by Fed's Goolsbee suggests a shift in monetary policy that could impact bond yields. As yields rise, bond prices typically fall, which negatively affects TLT, an ETF tracking long-term Treasury bonds.
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