- As we know, the FED held rates steady on 7/30, Powell said interest rates are in the right place to manage continued uncertainty around tariffs and inflation tampering expectations for a rate cut in September. Powell indicated, “There are many uncertainties to resolve.” Powell also stated that it does not feel like we are very close to the end of any resolution regarding tariffs and inflation. MUNI yields continue to be elevated, and we are buyers here based on pricing. Predicting “when rates will come down” is something we cannot do, however the thoughts are that rates will come down at one point. Yields should follow.
- US Treasuries declined as the FED, as mentioned, dimmed expectations for a rate cut in September, urging “patience” in the face of a strong labor market, and the current CPI number is higher than the “target” number. This has prompted traders to cut back bets on a more “forceful” FED action in the months ahead.
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