Tag Archive: fomc

Could Another Round of QE be in the Cards?

Markets have been wrestling with numerous issues in recent months. The ongoing war on trade, rising interest rates, Brexit, the continuing government shutdown and other geopolitical concerns to name a few. During that time, stock markets have come under pressure and recently flirted with bear market territory. A sharp rise in volatility didn’t help matters either, and investors have been left wondering if a market top has been reached. Much has been made of the mixed messages from the Fed. Not long ago, Fed chief... Continue Reading

What Can the Fed Do?

The Federal Reserve has been the topic of considerable debate in recent months. The central bank has continued its course towards policy normalization over the last couple years but has recently run into a brick wall. The Fed has hiked several times over the last year, drawing the ire of numerous analysts and even the President of the United States. The central bank recently followed through on its plan for another 25-bps rate hike in December. The recent release of the latest FOMC meeting minutes,... Continue Reading

The Message is Clear

Yesterday was a busy day for the Fed. Several central bank officials gave speeches throughout the day that were then followed by the release of the latest FOMC meeting minutes in the afternoon. Some of the speeches appeared to provide differing opinions on the economy and how the central bank should proceed. Chicago Fed President Charles Evans alluded to the Fed’s previous plans for another three rate hikes in 2019. Atlanta Fed President Raphael Bostic provided his take on the central bank’s plans going forward,... Continue Reading

Is the Fed Starting to Backtrack?

Rising interest rates have been the topic of considerable debate in recent months. The Fed has been sticking to its plan of gradual rate hikes while the benchmark 10-year note yield is solidly above the 3% level. Higher rates have not gone unnoticed, with everyone from President Donald Trump to Mad Money host Jim Cramer weighing in. Stock investors have also made their opinion clear, with recent declines and increasing volatility being largely blamed on higher rates. So far, the Fed has stuck to its... Continue Reading

Has the Dollar Gotten Ahead of Itself?

The latest meeting of the FOMC has now come and gone. As expected, the Fed continued on its recent course of policy normalization, hiking the Fed Funds rate by another 25 basis points. The central bank still expects to hike rates again before the end of the year, likely in December. There were some key changes in the policy statement, with the central bank electing to drop the term “accommodative” from its statement. Rate expectations going forward also changed as well, and it seems overall... Continue Reading

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Is a Full-Blown Depression in the Cards?

As investors await the latest FOMC meeting minutes, the ongoing battle over global trade remains at the forefront of attention. China, the EU, the U.S. and other regions thus far appear determined to dig in and try to hold their ground as tensions over trade escalate further. The current tit-for-tat exchanges of tariffs could be only the beginning, with even larger measures potentially being implemented. Although the opinions are quite varied as to how a global trade war could play out, such a scenario could... Continue Reading

A Double Whammy

The gold market is seeing some strong upside on Thursday as geopolitical risks and the Fed both fuel buying. In a move that was far from a surprise, President Donald Trump has officially cancelled the upcoming summit with North Korean leader Kim Jong Un. “I was very much looking forward to being there with you,” Trump said in the letter to the North Korean government. “Sadly, based on the tremendous anger and open hostility displayed in your most recent statement, I feel it is inappropriate,... Continue Reading

Is the Fed Behind the Curve?

Inflation has been a topic of discussion for some time now as the Fed seeks to normalize monetary policy. The Commerce Department reported today that the PCE (personal consumption expenditures price index) jumped to 2% year-over-year in March. That 2% is the Fed’s desired annual target for inflation. Inflation is gaining further traction due to a tightening labor market as well as recent tax cuts that are providing economic stimulus. Just last week, the government reported that wages and salaries saw their biggest increase in... Continue Reading

Could Higher Rates Derail Gold?

It seems that a big deal has been made of the latest FOMC meeting at which the Fed reiterated its plans for another rate hike in 2017, and three hikes next year. Will the Fed make good on its promise? That’s an entirely different question. It is important to keep in mind that the Fed was originally planning on raising rates three times in 2016, yet only one hike actually materialized at the end of the year. Could the Fed end up electing to hold... Continue Reading

Buying Opportunity

The price of gold has seen some moderate declines in recent days. Although some may attribute these declines to the FOMC meeting commentary on Wednesday, there may be other, simpler forces at work. On Wednesday, the Fed reiterated its plans for another interest rate hike this year, and the central bank says it remains on track for another three rate hikes next year. The Fed seems intent on following through with its plans despite a significant lack of inflation and other issues that could potentially... Continue Reading