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Wells Fargo CEO says reducing interest rates before the end of Iran conflict would be a mistake

BY Reuters | ECONOMIC | 01:06 PM EDT

NEW YORK, April 20 (Reuters) - Wells Fargo (WFC) CEO Charlie Scharf said on Monday that lowering interest rates now before there is clarity about a potential end to the Iran conflict would be "the wrong thing to do."

"Until it's clear what the end is in sight, there's real risk out there," Scharf said. The Wells Fargo (WFC) CEO said the U.S. consumer is still increasing spending, despite higher expenses with gas.

(Reporting by Tatiana Bautzer and Utkarsh Shetti; Editing by Chris Reese)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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