Episode 243 – Fed Surprises & Inflation Shocks: What You Need to Know for 2025’s Fixed Income Market with Kevin Flanagan



WisdomTree works to create a better way to invest, offering a leading product range that offers access to an unparalleled selection of unique and smart exposures. 

Kevin Flanagan is the Head of Fixed Income Strategy at WisdomTree, joining us to discuss the latest developments in monetary policy, inflation trends, fixed income strategies, and investment opportunities for 2025.

Also discussed:

  • The Federal Reserve’s recent rate cuts and its cautious outlook for 2025, including a shift from four expected cuts to two.
  • Flanagan’s predictions for inflation in 2025 and its impacts on fixed-income strategies and portfolios.
  • The normalizing of the now inverted yield curve, with Flanagan suggesting a barbell approach for investors to manage duration risks.
  • Treasury floating rate notes are highlighted as a strategic opportunity in the current environment, offering stable yields with less volatility than other fixed-income options.
  • Mortgage-backed securities compared to U.S. credit and high-yield investments.
  • The potential risks from new fiscal policies in 2025, such as changes in tariffs and legislation, emphasizing the need for flexible, active approaches to fixed income allocations.

 

Resources: 

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