Traders priced an 86% probability that the Federal Reserve will leave short-term interest rates unchanged at its next meeting ending July 29, according to CME FedWatch, following Fed Chair Kevin Warsh's first congressional testimony. Warsh affirmed the central bank's commitment to a 2% inflation goal and said bringing down inflation is important, echoing the Fed's June 17 statement after it held the target federal funds rate at 3.5% to 3.75%. Among 18 officials providing rate projections, eight expect to keep rates steady this year while nine project higher rates. The article suggests investors can benefit from elevated short-term rates through ETFs such as the State Street SPDR Bloomberg 1-3 Month T-Bill ETF, yielding 3.5%, and the JPMorgan Ultra-Short Income ETF, which had a 4.1% yield as of end-June.
State Street CorpState Street's SPDR Bloomberg 1-3 Month T-Bill ETF highlighted as benefiting from elevated short-term rates due to Fed holding rates.
JPMorgan Chase & Co
NVIDIA Corporation