IEF - Fed Ahead: Communication Is Key
By Noelle Corum, Associate Portfolio Manager; James Ong, Director, Derivative Portfolio Management; Rob Waldner, CFA, Chief Strategist and Head of Multi-Sector Portfolio Management
In May, we wrote about the US Federal Reserve's (Fed) evolving policymaking framework as it considers a shift to average inflation targeting. This new framework would allow the Fed to focus on urging average inflation toward its mandated target of 2%. The market set out to test the Fed as inflation trended lower in early 2019, after peaking in 2018.1 As inflation headed lower, bond markets began pricing rate