Risk doesn’t pay for fixed income investors

The US Federal Reserve is expected to cut interest rates further this week. (Image: Getty)

Wed, 18 Dec 2024

By Paulo TrevisaniInterest rates are falling, but not fast enough to convince fixed-income investors to take more risk.Uncertainty is to blame, economists say. Forecasting Fed moves has become trickier than usual, in great part because nobody knows for sure the extent to which President-elect Donald Trump’s promised policies will influence inflation and economic growth and ultimately drive interest rates.The lack of clarity has investors clinging to ultra-safe funds even as returns slowly decline.“You need to see more cuts to sort o...

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