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Ever since the Middle East conflict erupted earlier this year, rising energy prices have continued to push the persisting risk of inflation further into the foreground. However, several market sectors are still growing at an attractive pace and many investors have taken the signal not to pivot to full defense — just yet.
For years, central banks around the globe have tended to move in the same general direction when it comes to trimming rates. However, that is increasingly not becoming the case.
On September 17, the Federal Reserve cut interest rates by 25 basis points, ending months of debate and market speculation over when the central bank would trim rates down. This marked the first time the Fed lowered rates since December 2024.
Wall Street has been struggling to find a footing at the start of 2024. The uncertainty has made investors jittery, raising demand for cash-like ETFs.
Wednesday's CPI report had some positive news for markets as overall inflation continued to drop, but with underlying price pressures still keeping core CPI hotter than the Fed wants, “higher for longer” rates are very much in the cards. Core prices ex-food and energy actually accelerated from 5.5% in February to 5.6% in March.
At Exchange: An ETF Experience 2022, Stephanie M. Pierce, CEO of Dreyfus, Mellon & Exchange-Traded Funds at BNY Mellon Investment Management was celebrating the two-year anniversary of the issuer's index ETF suite.
With inflation driving yields to rock bottom, these ETFs may be the alternative to parked cash.
The investment advisor's newest product focuses on ultra-short-term securities.