Janet Rilling, CFA, head of Plus Fixed Income, and Danny Sarnowski, portfolio specialist for Plus Fixed Income, discuss the costs investors can face as they wait for a “Goldilocks moment” to add duration to their fixed income portfolios following a period of monetary policy tightening by the U.S. Federal Reserve.
Today’s global fixed income markets are highly volatile, and using a six-month outlook is one way that the Plus Fixed Income team at Allspring Global Investments navigates these changing environments. Janet Rilling, senior portfolio manager and head of the Plus Fixed Income team, shares her thoughts with Danny Sarnowski, portfolio specialist for the Plus Fixed Income team, on how the team uses this outlook and where they see things moving going forward.
When Federal Reserve (Fed) Chair Jerome Powell took the helm of the Fed in 2018, the Fed was close to the end of its rate-hiking cycle that started in December 2015. At the time, he said the Fed would be gradual with hikes. Fast-forward to January 2022, and Chair Powell dropped “gradual” in favor of being “nimble.” Then in the spring of 2022, he said the Fed would move “expeditiously” to bring down inflation.