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 is projected to decline in 2027, it is increasingly convinced that the next move for U.S. interest rates will be a cut rather than a hike. Dowding said it is unlikely that the U.S. 5-year Treasury yield will sustainably rise above 4%. Based on this assessment, BlueBay has shifted its breakeven inflation trade on medium-term U.S. Treasury Inflation-Protected Securities (TIPS) to directly go long on inflation-linked bonds. (Jin Shi)