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Market Extra: Dovish Fed likely to feed investor appetite for corporate debt

The Federal Reserve’s decision on Wednesday to hold key interest rates unchanged, while leaving its options open for a cut later this year, is likely to bolster yield-hungry investors’ appetite for corporate debt.

The outcome of the highly-anticipated Fed meeting will keep the fed-funds rate between 2.25% and 2.5%, but Fed Chairman Jerome Powell also said he would act if the economy gets too far off track.

Check out:Fed holds interest rates steady and has no plan to cut them in 2019—but it leaves itself wiggle room.

‘It certainly doesn’t look like the Fed is going to take away the punch bowl,” said Ken Monaghan, co-director of high-yield at Amundi Pioneer.

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