Are These Bond ETFs Smart Investments

[ETF Daily News]( October 5th, 2023 SPONSORED AD [Man Gets Into a Self-Driving Tesla... What Happens Next will Shock Everyone (Video)]( "Hi, I'm Teeka Tiwari... I'm about to get in this Tesla and drive up to a facility just a few miles from here to show you what could be the secret behind Elon Musk's new AI project... What happens next will shock you..." [Click here to see what happened.]( [Are These Bond ETFs Smart Investments]( Despite significant progress, inflation continues to stay above the Fed’s 2% target, and it will be likely for the central bank to raise interest rates further and hold them at a restrictive level for some time. Amid the uncertainty around the Fed’s monetary policy, ongoing government dysfunction, and other macroeconomic challenges, the stock market could remain highly volatile. Amid this backdrop, best-performing bond ETFs iShares 1-3 Year Treasury Bond ETF ([SHY]( – [Get Rating]( and iShares Treasury Floating Rate Bond ETF ([TFLO]( – [Get Rating]( could be ideal investments now for instant diversification and steady returns. Inflation posted its biggest monthly gain of 2023 in August as consumers faced higher prices on energy and various other items. The Consumer Price Index (CPI) [grew 0.6% for the month]( and was up 3.7% year-over-year. Economists surveyed by Dow Jones estimated respective increases of 0.6% and 3.6%. The Federal Reserve has raised rates 11 consecutive times since March 2022, bringing its benchmark interest rate to the 5.25%-5.50% range, the highest level in 22 years. As a result of the Fed’s tighter monetary policy, [inflation has sharply moved down]( to 3.7% at last read from its peak of 9.1% in June last year, but it still exceeds the Fed’s target of 2%. Meanwhile, stronger-than-expected jobs data has aggravated anxiety that the Fed will decide to keep interest rates higher for longer. As per data from BLS’ monthly Job Openings and Labor Turnover Survey (JOLTS) report, there were an estimated [9.61 million job openings in August]( up from July’s 8.92 million. Economists were looking for 8.8 million job openings. While Fed officials opted to hold the benchmark federal funds rate steady at its meeting in September, [most indicated that another rate hike would likely be needed]( before the year-end. “I remain willing to support raising the federal funds rate at a future meeting if the incoming data indicates that progress on inflation has stalled or is too slow to bring inflation to 2% in a timely way,” said Fed Governor Michelle Bowman. Also, Cleaveland Fed leader Loretta Mester said the Fed’s work is likely not done. “I suspect we may well need to raise the fed funds rate once more this year and then hold it there for some time as we accumulate more information on economic developments and assess the effects of the tightening in financial conditions that has already occurred,” Mester added. Amid the Fed’s likelihood to keep rates higher for longer, government dysfunction, geopolitical instability, and other macro headwinds, the [stock market will likely face enhanced volatility]( in the near term. Amid this, investors could consider taking refuge in bond ETFs. These ETFs provide [immediate diversification and a regular stream of income](. In light of these encouraging trends, let’s look… Continue reading at [STOCKNEWS.com]( NOTE: If URLs do not appear as live links in your e-mail program, please cut and paste the full URL into the location or address field of your browser. [Privacy Policy]( | [Terms & Conditions]( This email contains a paid advertisement.This is not a solicitation for the purchase or sale of securities. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice, prior to making any investment decision. Advertisements and sponsorships are provided as a service to Stock News users. Stock News is not responsible for their content, services or products. The statements and opinions contained in this advertisement are not those of Stock News, and Stock News disclaims any liability for or arising from such statements and opinions. You are hereby advised that Stock News is receiving a fee as compensation for the distribution of this advertisement. [Click here to unsubscribe]( Copyright © 2023 ETF Daily News, part of StockNews.com - POWR Stock Rating, Market Outlook & Investment Insights Magnifi Communities, 1 Penn Plaza, Suite 3910, New York, NY 10019