Treasury ETFs surged as investors digested a 25bp Fed rate hike and political friction surrounding the central bank's independence, with the 20+ Year Treasury Bond ETF (TLT) closing 1.11% higher.
The iShares 20+ Year Treasury Bond ETF closed 1.11% higher as longer-duration bonds rallied following the Fed's 25bp hike.
The iShares 7-10 Year Treasury Bond ETF rose 0.57% after the Fed's rate hike, reflecting a short-term bid in intermediate Treasuries.
Peter Schiff recommended buying gold, framing the Fed's rate hike and political interference as supportive for the precious metal.
The Federal Reserve unanimously raised benchmark interest rates by 25 basis points to a 3.75%-4.00% range, marking the first hike since 2023. The decision triggered political backlash, with Senator Elizabeth Warren and investor Peter Schiff questioning the central bank's independence following President Trump's comments regarding his influence on Fed Chair Kevin Warsh.
Despite political controversy, the bond market showed strength, with the iShares 20+ Year Treasury Bond ETF (TLT) rising 1.11% and the 7-10 Year Treasury Bond ETF (IEF) climbing 0.57%.