Municipal Market Investment Advisors

"We're in the stay rich business, not the get rich business."
-
Craig W. Henderson

Monday, April 23, 2018

 

Federal Reserve on the Move - March 21, 2017

Federal Reserve Chairwoman Yellen indicated late last year that three tightening moves could be in the monetary authorities’ game plan this year following their two 25 basis point moves at the end of 2015 and mid-December last year. Given their relatively quick mid-March subsequent action that notched the targeted Fed Funds rate higher by another 25 basis points, Ms. Yellen’s prediction must be given credence. Additional tightening moves from the current 0.75-1.00% target range will, as always, be dependent on the pace of economic growth, continued healthy labor reports and the inflation outlook. Minutes from the Fed’s mid-March FOMC meeting indicated that members felt the economy is near full employment with the unemployment rate at 4.70% in February while the Personal Consumption Expenditures Price Index, the Fed’s preferred inflation measure, has risen near their targeted 2.0% level. The March non-farm employment report indicated that the unemployment rate notched still lower to 4.5% despite a lower than forecast employment gain during the month.  Read More > >