On Wednesday July 31, 2019 the FOMC (Federal Open Market Committee) led by Jerome Powell and attended by our own Dallas based Robert Kaplan, did something they have not done in over 10 years…. LOWER RATES.
While we crowed ‘Not Necessary” they walked a great tight rope…
In this post announcement article…. and somewhat funny CNBC article, over a dozen … so called “Expert” firms completely disagree in all directions on what the Fed will do next!
With disagreement on what they will do next, no expectation will be ….. well … EXPECTED!
If I were a Fed official, that is exactly the way you want it … freedom to stay put, lower or raise without fussy Market Participants all weighing in on the same side of the fence.
They also stopped the winding down (selling reserves back to the market) of balance sheet reduction, which was a net tightening.
So let’s say they are in neutral now and have created the freedom to drive wherever they want! Nice..
Sorry we got a bit deep on this, this week, but we felt it important and wanted to keep you in the know!
Speaking of in the know – We have collected a few new examples of scamming that we will bring to your attention next week – One so clever it’s hard to believe!
Ahhh…but it is a Friday….
Care to guess what today and next week brings?
Last looong, big tournament of the summer…..
Thanks goodness for a new unlimited Cell plan and neat technology … Will be in touch!
Have a GREAT Friday/Weekend Summer day(s)!
John A. Kvale, CFA, CFP