Ask The Experts: Money Matters

By Mike Miles

F Fund attractiveness

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Q. Does the Fed’s announcement that it will not raise interest rates until unemployment reaches a specific target make the Thrift Savings Plan F Fund more attractive in the near term?

A. To the extent that it reduces the probability that market interest rates will rise, it reduces the F Fund’s downside risk. With interest rates near zero, and most outstanding bonds trading at a premium, I’m not sure that I’d call the F Fund particularly attractive, however.

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