RE:RE:RE:NAV February 28Yes i agree, even if there are cuts in the summer and fall, dont expect them to be huge... likely only 25 basis points per cut. This wont make Quadravest cut the preferred rate very much. They have to reamin competitive with other preferreds out there. I am getting over 11 %yield on TRP.pr.h for instance....
FED wont be cutting unless inflation gets under control.
A key measure of U.S. inflation rose faster in January than the Federal Reserve would have liked, as policy makers watch for more signs of easing price pressures before they lower interest rates.
The personal consumption expenditures price index increased 0.3% last month from December, the Commerce Department said Thursday, in line with the expectations of economists polled by The Wall Street Journal. The closely watched core index, which strips out volatile food and energy prices, rose 0.4%, also matching the economists’ forecast.
Over the 12 months through January, the overall PCE price index rose 2.4% while core prices climbed 2.8%. Both of those figures were below economists’ expectations, as the Commerce Department revised down inflation data for December.
The central bank targets inflation at 2% per year, which translates to monthly price gains of 0.165%.
Monetary policy makers have signaled they want to see further progress toward that target before they consider reducing interest rates. Inflation, as measured by PCE prices, peaked at more than 7% in 2022.