Bond investors have been at this crossroads several times already in recent years, making plans for what experts say is the inevitable return to a climate of rising interest rates, only to see the Federal Reserve once again decide inaction is best for an economy that many believe is still in recovery mode.
Now, as the Fed prepares for a Dec. 13-14 policy meeting, its first since the election of Donald Trump as president, the bond market is once again watching with intense interest. Indeed, in addition to the usual factors that go into the Fedâ??s interest-rate deliberations, led by inflation, Trump plans for infrastructure projects could increase government borrowing requirements.
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