A Steady Fund for Bond Market Volatility

Bond prices and interest rates move in opposite directions, so bond market volatility was high in 2022 and 2023, when the Federal Reserve raised the federal funds rate at a record pace. 

But uncertainty about the path of interest rates can destabilize bonds, too, so price swings have continued into 2024. “It’s been a challenging time,” says Elizah McLaughlin, who manages the Fidelity Intermediate Municipal Income Fund (FLTMX) with Cormac Cullen and Michael Maka.