The Federal Reserve’s aggressive rate hikes this year are finally yielding results, as inflation eased for the second consecutive month in November. The consumer price index in November rose 7.1% year-over-year and 0.1% sequentially, coming below analyst estimates.
The Fed also kept its word of slowing down the pace of rate hikes by announcing a 50-basis point hike earlier this month after four consecutive three-quarters of a percentage point rate hikes. However, the central bank intends to keep raising interest rates through next year, with the terminal rate expected to reach about 5.1%.
The potential continuation of rate hikes has renewed recession concerns. With the macroeconomic environment expected to remain uncertain in the near term, it could be wise to invest in ETFs with exposure to industries or asset classes that usually remain relatively unaffected by economic weakness.
JPMorgan Ultra-Short Income ETF (JPST)
JPST is an actively managed, ultra-short-term, broad-market bond fund that aims to maximize income and preserve capital. The fund makes investments in fixed-rate, variable-rate, and floating-rate debt, including corporate issues, asset-backed securities, and…
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