VGLT News and Press, Vanguard Long-Term Government Bond ETF From 09/22/22

Summary As comments from heads of central banks go, yesterday’s press conference was relatively lucid. In the case of deciding when the bond market writ large bottoms and begins an extended rise, a fourth factor comes into play: investor sentiment. As yields rise and in...

Summary At the September meeting, Fed officials hiked the fed funds rate by 75 basis points and provided their most resolute messaging to date on their willingness to do whatever it takes to battle inflation. Given tighter financial conditions and a higher fed funds rate, we belie...

Summary The Fed was more hawkish, and the median dot sees a 125 bp increase in the target rate in Q4. The hawkish thrust was also evident in projecting that the target rate will remain higher for longer. The market still does not fully accept the Fed's message. The unemployment ra...

Summary The U.S. Federal Reserve delivered its third straight 75-bps rate hike on Wednesday. Based on the Fed's updated economic projections, the growth outlook is for a weaker economy over its projection horizon versus its June update. We know policy works with a lag, and inf...

Summary The Federal Reserve met expectations and hiked rates 75bp. With inflation proving to be far stickier than imagined, the Fed repeated that activity needs to slow much more with the door left wide open for a fourth consecutive 75bp hike in November. There is a strong clu...

Summary Federal Reserve Chairman Powell delivered another forceful message to markets that an early pivot back to rate cuts will not happen until inflation is under control. However, there is still an element of wishful thinking in the Fed’s forecasts and rhetoric that part...

Summary The Federal Reserve delivered another outsized rate increase at today’s FOMC meeting, raising the Fed Funds target by 75 basis points to a new range of 3.00%–3.25%. In early 2008, the Fed was cutting rates due to the financial crisis and great recession, whil...

Summary The Federal Reserve is expected to raise interest rates today and another 75-basis point hike is widely expected. Consumer price inflation remains far above the Fed’s 2% target, although there are hints that maybe, possibly, pricing pressure has peaked. As a num...

Summary Another FOMC meeting, and another 75bp hike. But there is a rump going for 100bp, so 75bp could be positive for risk assets (albeit briefly). The dot plot will be watched, as the terminal rate is key for where market yields peak. A 75bp hike takes the effective funds r...

Summary After several years of steady growth and low inflation, policymakers now face a delicate tradeoff between bringing down inflation or sustaining economic growth amid heightened macro and market volatility. We expect the Fed to remain committed to aggressive rate hikes. ...