Are Bonds A Good Investment Right Now?
In March, the Federal Reserve decided to hold interest rates steady, making it two meetings in a row that the nation’s central bank has stood pat. In its decision, the Fed cited uncertainties about the economy, including the impacts from President Donald Trump’s proposed tariffs and their potential to raise inflation. The tariffs and other Trump policies could further stoke prices, making it harder for the Fed to cut rates and delaying the already-expected rate cuts in 2025.
With the Fed pausing on rates for now, is it a good time for investors to buy bonds, expecting them to rise if the Fed cuts rates later this year? Or should investors hold off on bonds for now?