Federated Hermes fixed-income strategist Karen Manna said the Fed’s 25bp hike last week reinforces the reality for bond investors through most of 2026: rates are materially higher and the timing/path of any decline remains uncertain. Multi-year high US Treasury yields reflect resilient growth, lingering inflation concerns, large fiscal deficits and markets’ reassessment of where ‘normal’ rates should be. She added that while higher yields have caused near-term price pressure, they improve long-t

Federated Hermes fixed-income strategist Karen Manna said the Fed’s 25bp hike last week reinforces the reality for bond investors through most of 2026: rates are materially higher and the timing/path of any decline remains uncertain. Multi-year high US Treasury yields reflect resilient growth, lingering inflation concerns, large fiscal deficits and markets’ reassessment of where ‘normal’ rates should be. She added that while higher yields have caused near-term price pressure, they improve long-term fixed-income investment opportunities, and that distinction is critical.