The Fed Raised Rates, Analysis on Short and Long Term Rates, Interesting Observations From Conference Conversations

Last week during the afore mentioned conference, the FOMC (Federal Open Market Committee) continued their increases in the the short end of the yield curve aka Fed Funds Rate…

FOMC – Federal Reserve Raises by .75%

Last week the FOMC continued their increases in the very short term Fed Funds Rate…

Note the 1 Year Treasury compared to the 10 Year – Inverted as the longer term fixed income market could be looking forward to the eventual slow down.

In a chance conversation at the conference, Liz Ann Sonders – (Chief Investment Strategist of Charles Schwab) and I had a conversation about the FOMC meeting and an interesting observation.

The press release had some soft language that led many to believe they may be on the path to slowing increases…. Capital Markets took off…. of course Powell could see this and during his live press conference made sure to re-iterate the increases were still on the table…

Sonders and I both agreed, had the capital markets not gotten ahead of themselves… Powell would likely have said nothing… The Fed wants the slow down …

Have A Great “Fed Raised and Analysis” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

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