Commentary

The Federal Reserve signals higher-for-longer interest rates

Money markets commentary

Key Takeaways
  • The Federal Reserve takes a pause but signals higher-for-longer interest rates to rein in inflation.
  • The rising supply of Treasury bills has been well absorbed by investors as more issuance looms on the horizon.
  • Treasury bill yields have trended higher, driven by elevated Fed rate expectations and the surge of recent supply.
  • Money market flows reached record highs in the third quarter amid volatility in the broader asset markets.
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The Federal Reserve signals higher-for-longer interest rates