Institution: Fed to Stay Put This Year, Next Move Will Be a Rate Cut

Odaily Planet Daily News BlueBay Chief Investment Officer Mark Dowding said in a report that the institution still expects the Fed to keep policy unchanged in 2026, but as inflation begins to decline 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 it is unlikely that the yield on the 5-year U.S. Treasury note will sustainably break above 4%. Based on this judgment, BlueBay has shifted its breakeven inflation trade on medium-term U.S. Treasury Inflation-Protected Securities (TIPS) to directly long inflation-linked bonds. (Jin Shi)