USFR: Skate To Where The Puck Is
Summary
- The Federal Reserve is expected to make three rate cuts in 2024, shifting to an easier monetary policy.
- Treasury bill yields closely follow Fed Funds policy rates, so the income from the USFR ETF will decrease as rates are cut.
- To protect against rate cuts, investors may want to consider lengthening the duration of their 'cash' holdings with 2-year treasury funds.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of USFR, SGOV, TUA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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