
A divided Fed holds the line on interest rate cuts. How does this affect you in your portfolio? June 19: The Federal Open Market Committee met this afternoon, and they lowered their inflation forecast to just 1.8%. That’s about as close to the sweet spot as an economy can get. All eyes were on the Fed, however, to see how they responded to the European Central Bank’s decision to lower their interest rates. And in what is a thumbs-up for Fed independence, by a nine-to-one decision the Fed decided to hold the line on interest rates, while noting that it’s very possible in the next 12 months that they would be dropped by maybe a quarter of a percent. So there are two threads going on here that are important to you as an investor. First and foremost is the issue of Fed independence. As the president makes thinly veiled...
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