Another 75 basis point rate hike can cause undue stress for fixed income investors looking to mitigate rate risk. Thematic exchange traded fund (ETF) provider Global X has three options to help alleviate the pain.
The Fed reiterated its hawkishness on interest rate policy as inflation continued to climb. Federal Reserve chairman Jerome Powell confirmed that the central bank will do what it needs to do in order to keep inflation in check.
“If we want to set ourselves up, really light the way to another period of a very strong labor market, we have got to get inflation behind us,” said Fed Chair Jerome Powell. “I wish there was a painless way to do that. There isn’t. What we need to do is get rates up to the point where we’re putting meaningful downward pressure on inflation. And that’s what we’re doing.”
While there are a plethora of options available to hedge…