Bonds’ Rough Ride Nears End as Fed Risks Recession: MLIV Pulse
- Majority sees the Fed funds rate peaking at 4% or less
- 10-year yields will peak at below 3.7%, most respondents said
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Investors are skeptical that the Federal Reserve can tame the worst inflation in four decades without driving the economy into a recession.
That’s bad news for Americans, who face the prospect of a downturn as their bills for food, rent and fuel swell. But to bond investors hit by deep losses this year, it may mean any further pain will be short-lived, as a recession will spark the US central bank to cut rates next year. That’s according to the results of the latest MLIV Pulse survey.