The idea behind baby bonds is to establish trust funds for children when they’re born, allowing the money to grow over time and then be accessed in young adulthood for wealth-building purposes like education, buying a home, starting a small...
Traders don’t believe that Congress is foolish enough to allow a default, and even if one were to occur, they are signaling it would be short-lived and less damaging than feared.
The increase lifted the Fed’s benchmark federal funds rate to a target range of 5% to 5.25%, the highest level since 2007, up from nearly zero early last year.
Fund managers argue that bonds, particularly higher-rated ones, will be able to better weather any economic slowdown, whereas stocks would suffer more if the Federal Reserve fails to navigate a soft landing.
