Not surprisingly, Janet Yellen and the gang at the FOMC (Federal Open Market Committee) hit the pause button last week on an interest rate increase.
No Rate Increase
Basically the FOMC is signaling no rate increase before the election. As strong of a conviction (huge review) that we have for a rate increase, we are fine with a delay given the coming election (first debate tonight.)
Capital Markets Pleased
Treasury Yields (rates) Down Bonds Up, Equities Up, Utilities (rate sensitive) Up
We were slightly surprised by the overzealous capital market reactions!
Have a Great Day!
John A. Kvale CFA, CFP