Ray Dalio just posted his thoughts on the Fed hitting the 0% interest rate floor which was announced yesterday. You can read it at:
https://www.linkedin.com/pulse/implications-hitting-hard-0-interest-rate-floor-ray-dalio
One thing that stood out to me is that all asset classes are now going down, which has definitely been true in the last couple of days. Even those of us who are diversified are taking a bigger hit than usual.
At this point owning bond funds is not much of a hedge since interest rates can only go one direction from here (up). Likely short-term rates will stay at zero for some time, and if the Fed starts buying mid to long term bonds their rates could go lower as well, although that could change if lots of investors start dumping bonds. Currently bonds have almost no yield, and prices that can only go down and not up.