Ready, Set, Fed Time - June 19, 2019

Last week, we looked at how stocks respond to rate cuts. This week let’s look at how the Fed may frame its rate decision and outlook.

  • A rate cut following Wednesday’s meeting can’t be ruled out, but odds are low.

More likely – the Fed emphasizes its flexibility and likely opens the door to possible rate cut(s) in the second half of the year.

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Eyes on the Fed - June 17, 2019

The Federal Reserve’s two-day meeting concludes on Wednesday. A recent shift in the Fed’s stance, hinting it is open to rate cuts to support the economy, has aided investor sentiment.

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Sniffing Out a Cut in Interest Rates - June 10, 2019

The broad-based S&P 500 Index posted its first weekly advance in five weeks. While some of the gain can be traced to short-term oversold conditions, the trigger came from expectations the Fed may be gearing up to cut interest rates.

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Falling Treasury Bond Yields and Rate Cut Expectations - June 5, 2019

First China, now there is the threat of steep tariffs on Mexican imports.

Impact: Stock market volatility and falling Treasury bond yields, as investors seek the safety of Treasuries (bond prices, yields move in opposite directions).

Odds of a recession by year-end remain low but have edged higher amid trade tensions that are slowing global trade flows and dampening business confidence.

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