Posted 12/1/2023, 5:52:18 PM
Fed's Powell Hints at Further Rate Hikes While Goldman Foresees Pause; Brighter Bond Outlook for 2024
- Fed Chair Powell said rate hikes may not be done yet, despite earlier signals from other Fed officials
- Goldman Sachs believes the July rate hike was the last one, though uncertainties remain for 2024
- The economic backdrop seems better for bonds entering 2024 compared to cautious 2023 outlooks
- Interest rate sensitivity benefits bonds currently; total returns may reach 5-6% for high quality bonds
- Front-end Treasury yields likely to fall further but longer-dated yields could rise in 2024 on growth expectations