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152 days

Why these analysts expect no rate cuts in 2025, as corporate bond ETFs retreat from Fed-sparked rally - MarketWatch

1. LQD fell 0.2% amid market reactions to Fed's policy. 2. Fed predicts slower growth, possible inflation rise, and no rate cuts in 2023. 3. Credit spreads for U.S. investment-grade bonds decreased slightly. 4. Tariff uncertainties may hurt economic growth and inflation. 5. Investor sentiment fluctuated between optimism and concern post-Fed meeting.

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FAQ

Why Bearish?

The Fed's hawkish stance on rate cuts negatively impacts corporate bonds like LQD. Historical trends show bond prices often decline during periods of rising inflation expectations.

How important is it?

The article discusses Fed policies and inflation, critical factors influencing bond ETFs like LQD. High relevance is due to ongoing economic conditions impacting investor decisions.

Why Short Term?

Immediate market reactions to Fed's reporting and policies can affect LQD's price quickly. Over the next few months, tariff uncertainties may drive further volatility.

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