“The odds of a rate hike in June are fading fast,” Michelle Girard, chief economist at RBS, said in the Reuters article. “The recent data cannot leave the Fed feeling more confident that inflation will move higher.”
If the Fed raises rates too soon, it could raise deflationary pressures, which could send the economy into a spiraling decline as cash becomes more valuable, prices continue to fall and Americans withhold spending to buy something cheaper tomorrow. [ETFs for a Deflationary Period]
iShares TIPS Bond ETF
For more information on Treasury Inflation Protected Securities, visit our TIPS category.
Max Chen contributed to this article.