Investors Sound Warning About Markets’ Complacency on Interest Rates
Markets have rallied since the Fed dropped a reference to future rate increases
Stocks and bonds are rising on bets that the Federal Reserve has ended its nearly four-year campaign of interest-rate increases, worrying investors who believe the central bank could upend those expectations later this year.
Since the Fed’s January meeting, a number of investors and traders have concluded that the central bank hasn’t just paused its rate increases, but finished them altogether.
Some believe the Fed’s next move could be to cut the benchmark short-term rate, something it hasn’t done since December 2008, when the global financial crisis forced the central bank to slash rates to near zero.
Please select this link to read the complete article from The Wall Street Journal.