Tag: bond purchases

US bond funds rake in more cash despite inflation fears

Mary Pat Campbell

Link: https://www.ft.com/content/787d1be6-e7d9-43a2-b77c-07916fe19f3e

Graphic:

Excerpt:

Analysts attributed the popularity of bond funds — which do not include money-market holdings — to concerns about lofty stock valuations and an ageing population’s need for steady income during retirement.

“Financial advisers follow asset allocation models and portfolio rebalancing and demographics are strong trends,” said Shelly Antoniewicz, ICI senior director of financial and industry research. “The cumulative flow to bond funds lines up nicely with the percentage of the population over 65 years.”

Author(s): Michael Mackenzie

Publication Date: 6 July 2021

Publication Site: Financial Times

Fed Chairman Vows to Keep Supporting Economic Recovery

Mary Pat Campbell

Link: https://www.thinkadvisor.com/2021/02/23/fed-chairman-vows-to-keep-supporting-economic-recovery/

Excerpt:

The Fed will continue $120 billion in monthly bond purchases and communicate any change.

Powell doesn’t expect any large and persistent increases in inflation; some pickup will be temporary.

Powell says getting the pandemic under control is needed for the economy to reopen.

Author(s): Bernice Napach

Publication Date: 23 February 2021

Publication Site: Think Advisor