This commentary by Nuveen’s Fixed Income Strategy team analyzes the Federal Reserve’s September rate cut and its implications for investors.
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The Fed cut rates by 25 bps to 4.00–4.25%, with its dot plot now signaling 50 bps of additional cuts in 2025 as labor market risks intensify.
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Growth remains positive but is moderating, with unemployment projected to reach 4.5% and core PCE inflation peaking just above 3% by year-end.
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Investment opportunities include shorter-duration fixed income, securitized credit, real estate recovery plays, municipal bonds, and AI-driven technology equities.
How should portfolios be rebalanced to capture opportunities across both defensive and growth assets in this shifting policy environment?
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