Fed in No Rush to Raise Rates But Bond Investors Should Get Ready

Minutes released by the Federal Reserve indicated that Fed officials appear to be in no rush to raise interest rates again, but investors should still be thinking about future inflation when managing their investments, according to one portfolio manager.  'The Fed minutes today were very interesting in the sense that it seemed the Fed took April as a potential hiking date largely off the table,' said Jeff Klingelhofer, Portfolio Manager at Thornburg Investment Management. 'My expectation is the Fed will still see significant challenges in moving this year. I would probably expect one, maybe two rate hikes.'  Klingelhofer said while the Fed is willing to keep rates lower for longer, 'the possibility of inflation creeping in, has certainly risen.'