For the past two years, income investors have increasingly been turning to the equities market in order to offset the Federal Reserve’s interest rate cuts, which have resulted in diminished yields on fixed income products.
However, since the United States and Israel led attacks on Iran, the likelihood of the Fed once again lowering its benchmark effective federal funds rate (EFFR) at this month’s Federal Open Market Committee meeting—and doing so for the first time in 2026—has all but disappeared.
