Tag Archives: federal reserve

What’s next for the Fed? Hikes, earnings, and more

It’s a new year, which brings a new flock of voters on the Federal Open Market Committee (FOMC). The new members were supposed to be slightly more hawkish, but they sound pretty dovish. The FOMC left its policy rate unchanged … Continue reading

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Four things investors need to watch for in 2016

Good riddance, 2015. Many investors probably feel frustrated with the meager—if any—return on a diversified portfolio from 2015. The year was bookended with central bank activity. In January, the European Central Bank (ECB) launched a larger-than-expected asset-purchase program, but it … Continue reading

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Putting the Fed rate move into perspective

Dr. Brian Jacobsen recaps the Fed’s rate-hike decision and what it means for investors. Listen to the podcast (new window). Aldo Ceccarelli: Let’s start by recapping what the Federal Open Market Committee decided to do on December 16. Brian Jacobsen: In one … Continue reading

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Fed doesn’t disappoint, hikes 0.25 percentage points

As expected, the Federal Reserve raised interest rates 0.25 percentage points at the conclusion of its meeting today, noting improvement in the labor markets and its expectations that inflation would move to its 2% target in the medium term. Gold … Continue reading

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How the Fed’s rate hike affects investors

To paraphrase Churchill: Now this is not the end of low rates. It is not even the beginning of the end. But it could be the end of the beginning of the low-rate era. The path to higher rates will … Continue reading

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A snapshot of the municipal bond market ahead of the Fed

Today we share three snapshots of the municipal bond market from the Wells Fargo Asset Management Municipal Fixed-Income team. We look at the municipal yield curve ahead of the Federal Reserve’s (Fed’s) December meeting, lower-rated credits outpacing higher-rated ones, and … Continue reading

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Bond markets favor intermediate durations

There is considerable debate over which duration strategy might be best as the Federal Reserve raises the federal funds rate. The debate revolves around whether inflation or short-term interest-rate expectations will have more influence over bond performance. Those who regard … Continue reading

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Why investors shouldn’t wait for rate hikes

It wasn’t a huge surprise when the Federal Open Market Committee left its target for the federal funds rate unchanged between 0.00% and 0.25% at its October meeting. What was surprising was the Fed clearly putting a rate hike on … Continue reading

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Can upward pressures lead to upward stock prices?

“When the gods want to punish you, they answer your prayers.” —Karen Blixen, Out of Africa “I can’t get no satisfaction.” —Mick Jagger, Satisfaction After almost seven years and 1,500 points on the S&P 500 Index, it’s hard not to … Continue reading

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Emerging markets investors shouldn’t dread a Fed hike

In 1997, the Federal Reserve (Fed) hiked its target for the federal funds rate from 5.00% to 5.25%. It was only a quarter percentage point. No big deal. It was an even lesser deal when you consider the prevailing level … Continue reading

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