Institution: Fed to Hold Steady This Year, Next Move Will Be a Rate Cut

Odaily Planet Daily News BlueBay Chief Investment Officer Mark Dowding stated in a report that the institution still expects the Fed to maintain its policy stance in 2026. However, as inflation begins to ease in 2027, it is increasingly confident that the next move for U.S. interest rates will be a cut rather than a hike. Dowding said the yield on the U.S. 5-year Treasury note is unlikely to rise sustainably above 4%. Based on this assessment, BlueBay has shifted its breakeven inflation trade on medium-term U.S. Treasury Inflation-Protected Securities (TIPS) to a direct long position in inflation-linked bonds. (Jin Shi)