Richard Clarida anticipates that a reduction in forward guidance by the Federal Reserve would likely increase interest rate volatility in the bond market.

“I think the most robust prediction I would make is it would it would in increase to some extent market volatility in particular interest rate volatility”

Investors should observe the movements within the bond market because rising credit spreads indicate that volatility may increase and equities could face downward pressure.

“I'm going to suggest for equity participants right now is a good time to watch all the movements uh within the bond uh market.”

Mortgage bonds currently present a compelling opportunity as a store of value and a source of extra spread compared to Treasuries.

“you know the number two fixed income asset class category doesn't get a whole lot of um of commentary from time to time but it actually is is a is a really you know compelling opportunity right now.”

Lower interest rates over time create a favorable backdrop for fixed income investments.

“I think the path is lower for rates over time uh you have a kind of squishy labor market and you have a backdrop where inflation is you know certainly above two but not a major problem so you'll get some cuts this year and that'll that'll lead to 10ear lower that's a good good backdrop for fixed inc”