Citi advisors recommend investing in short-term bonds in response to Fed rate cuts
As the Federal Reserve cuts interest rates, short-term Treasury bills and other short-term bonds are expected to benefit, as they are closely tied to the federal funds rate. The performance of long-term bonds will depend more on the outlook for inflation and economic growth. Stuart Springer, a senior wealth adviser at Citi Personal Wealth Management, advises investors to choose bonds with shorter, but not too short, maturities.
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