fed note

March 2019 Fed Note

The March FOMC meeting ended as many predicted—with no change to the fed funds rate, which is currently set at 2.25-2.50%. Regardless, the meeting was closely watched in terms of how the Fed planned to communicate a stance on policy for the remainder of 2019. The formal statement noted a slowing in economic growth from…

interest rates

No Interest Rate Changes This Month

The FOMC unanimously decided on no policy action upon the conclusion of their January meeting, which was as expected. The formal statement noted continued strength in the labor market and economic activity rising at a ‘solid’ rate (downgraded from December’s ‘strong’).  While household spending has continued to grow, a slowdown in business fixed investment last…

interest rate increase

Interest Rates Up Another 0.25%

The Federal Reserve Open Market Committee raised the fed funds target rate by 0.25% to a new level of 2.25-2.50%.  This was widely anticipated, with a high futures market probability of this outcome beforehand.  There were no committee dissents. The formal statement was little altered from November, noting that economic activity remains strong, unemployment remained…

mid-term election

How will the mid-term election results affect financial markets?

Unlike the surprise result in the presidential election two years ago, that fooled pollsters and statisticians both, last week’s mid-term election results were in line with predictions—although a few surprises still unfolded.  The Republicans held their majority position in the Senate, while the Democrats won a majority in the House of Representatives.  However, both were…