Not unreasonable to imagine Fed embarking on hiking cycle within 3 or 4 years – BofA
|The Bank of America (BofA) recently highlighted odds of the Fed rate hike in the next 3 or years, or even sooner, considering the 10-year bond yields and the economic transition.
The US bank quotes Fed Chair Jerome Powell while initially defying the rate hike odds before saying, “the market is thinking about it, and we are starting to see that dynamic come back in play driving 10y rates higher."
“While it seems almost crazy to imagine the Fed hiking rates, the fact is that 10y rates incorporate Fed policy expectations over the full span of the next 10 years, and it is not unreasonable to imagine the Fed embarking on a hiking cycle within 3 or 4 years of today, or even sooner if everything goes right with the pandemic and the economy,” mentioned the report further.
It’s worth mentioning that the US 10-year Treasury yields drop 1.7 basis points to 0.85% by the press time of early Wednesday. The yields declined after refreshing the eight-month high the previous week.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.