Summary
- The Federal Reserve looks likely to begin cutting short-term rates in 2019, possibly as much as 75 basis points over the next year.
- Yields for money market funds and short-term Treasurys will track lower with those rate cuts.
- Inflation-protected investments could perform well in a time of falling rates and steady moderate inflation.
The “glorious” days of getting a 2% return on a very safe, very liquid investment are drawing to a close. Why? The Federal Reserve is on the brink of beginning a series of cuts to its Federal Funds rate, the nation’s key short-term interest rate.
This is a personal decision and depends on your other investment options. If you think inflation will continue to be…