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July Rate Cut? Not So Fast, Says Fed Chief

July Rate Cut? Not So Fast, Says Fed Chief

The Federal Reserve, which seemingly has the market's reins firmly in its hands, pulled back hard on Tuesday. Chairman Jerome Powell said the Fed knows its policies "should not overreact to any individual data point or short-term swing in sentiment." That put into question a potential July rate cut that some investors considered a given, prompting them to buy stocks over the past few weeks in anticipation of cheaper borrowing costs for businesses. Stocks, which started the day sluggishly anyway, weakened considerably after Powell's statements. The Dow dropped 0.7% to 26,548; the tech-heavy Nasdaq took a much more substantial hit, off 1.5% to 7,884.

Treasury yields continued their fall, as nervous investors drove up prices, with the 10-year plumbing back below 2%. The T-note dipped below that level last week, too, but otherwise hadn't been sub-2% since November 2016. So where can income investors turn to for better returns? These municipal bond funds' yields might not blow you away, but you'll keep more of that cash come tax time. A few top dividend-focused ETFs can deliver better-than-average yields, too. You can acquire high yields via these 10 stocks and funds -- and have that income delivered monthly, to boot. And you can get high yields on the cheap via these 10 closed-end funds (CEFs). Yes, CEFs traditionally charge high fees thanks to active management and complex trading strategies.

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