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From March to November 2022, the US Federal Reserve (Fed) upped the federal funds target rate from near-zero to an upper bound of 4%. You’d have to go all the way back to May 1981 to find a larger move in such a short period of time. But comparisons between time periods can be misleading. In January 1981, the Fed’s target rate stood at 16% and moved to 20% by May 1981. Then, a 4% move off 16% rates was significant, but may have been more palatable to investors. Fast forward to today and a 4% move off zero has investors questioning the need for fixed income. 

 

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The views expressed here are those of the author and should not be construed as investment advice. They are based on available information and are subject to change without notice. Portfolio positioning is at the discretion of the individual portfolio management teams; individual portfolio management teams, and different fund sub-advisers, may hold different views and may make different investment decisions for different clients or portfolios. This material and/or its contents are current as of the time of writing and may not be reproduced or distributed in whole or in part, for any purpose, without the express written consent of Hartford Funds.

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About The Author
Author Headshot
Joe Boyle, CFA, CPA
Hartford Funds Fixed-Income Product Manager

 

 

 

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