Fed Reignites the Search for YieldFedReignitestheSearchforYield

As the Federal Reserve inches toward its terminal policy rate, markets focused on its commitment to data dependency. Bolstered by broadening expectations for moderation in growth and inflation data, a reignited search for yield fueled the rally across all fixed income assets. While the market may suffer some setbacks if the Fed fails to fulfill investor expectations, from a long-term perspective, interest rates appear to be in a “strategic buy zone.”