22 Sep Fixed Income Perspectives – Wake Me Up When September Ends
Voya Investment Management – Fixed Income Perspectives – September 2015
Summer has come and passed. Can zero interest rates really last? Seven years has gone so fast. Wake me up when September ends. Green Day fan or no, an investor could be forgiven for wanting to sleep through the volatility that has emerged over the past couple of months in anticipation of the FOMC’s pivotal September 16–17 policy meeting. While it was once widely expected that this gathering would result in the central bank’s long-anticipated move away from zero interest rate policy, more recent financial market gyrations on fears about weak global growth and moribund inflation inspired doubts that a third quarter hike was truly in the offing. This intuition proved prescient, as the Fed remained on hold in September, citing concerns about recent “global economic and financial developments.”