Fed's Rate Cuts Make Bonds Attractive, No More Hikes Until Late Next Year

Guggenheim Investments predicts that the Federal Reserve will cut rates below 3% in response to a likely recession in the first half of 2024. They expect the Fed to reduce rates by around 150 basis points next year and more in 2025. Guggenheim recommends investors to look past the current bond market volatility and focus on higher-quality parts of the credit market, such as agency mortgage-backed securities and structured credit. The stock market rallied for a sixth straight session on Monday.