What do the Fed’s policy shifts from calendar to economic targets mean for investors?

The U.S. Federal Reserve recently announced changes that will have major implications for investors and plan fiduciaries. The Fed’s decision to move to economic targets rather than date-based indications will result in a higher-rate environment. Plan sponsors and trustees would be wise to examine their plans and make adjustments now to prepare for the coming rate increases, as well as plan what actions to take when rates stabilize.

This paper offers several considerations for investors pertaining to the Fed’s policy shift from calendar to economic targets.

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