Last week, here in our preview of the meeting post, we discussed what the Federal Open Market Committee would likely review via the fortunate lunch with local Dallas Federal Reserve Chair Robert Kaplan and even had direct audio from the event.
We know it’s summer and we know many of you may be taking much needed R and R, but the FOMC meeting last week was surprisingly important.
Bottom Line: No rate lowering but rhetoric that was taken by market participants as a lowering is in the cards sooner rather than later!
Important Update Meeting Review
Jerome Powell, FOMC Chair released his decision to NOT lower rates ….
our comments….
From information gathered via the audio and economic data points available at the time, we felt strongly that the FOMC would not LOWER rates, that’s in bold because until just recently, many thought future increases may be in the cards.
However … this statement, in the FOMC press release was deemed to mean rates will be lower at the next meeting, which put wind int he sails of Capital Markets …
“The Committee continues to view sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective as the most likely outcomes, but uncertainties about this outlook have increased. In light of these uncertainties and muted inflation pressures, the Committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2 percent objective.”
Here is the joint estimate of FOMC members for GDP (Gross Domestic Production-broadest estimate of US growth) for the remainder of the year … note an expectation of slightly slower growth for the remainder of the year and into 2020/21:
There is also a Dot Chart that shows where FOMC members expect rates to be over the same time period, but it was a mess and confusing…so we left it out!
Not playing Economist here, but there is a lot of room for lowering or NOT lowering as well… time will tell, but for now the general consensus for the next meeting which is at the end of July (30-31) is for a lowering of rates, at least by most Market Participants or those with a microphone …. Call us skeptical of agreeing at this time….
Bottom Line: No rate lowering but rhetoric that was taken by market participants as a lowering is in the cards sooner rather than later!
There are some nice positives that come with these expectations… Mortgage Rates will likely continue to stay low and may even go lower!
Sorry if we got into the weeds, but we wanted to clarify the slightly blurry statement, reaction, and expectations!
Have a Great “FOMC Meeting Update” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
32.862841
-96.808100
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July 2019 Podcast Video, Financial Planning and Capital Market Update – By John Kvale
Hello and Welcome to our July 2019 Financial Planning and Capital Market Update!
If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast format as well as Video!
Newbies –
We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!
July – 2019 Video
Financial Planning Tip (s) –
We did have a CLUE
After almost violating our own rule, here in this updated article we reviewed the reasons not to have a claim on your insurance.
With a mini water heater retiring under its own terms but leaving a small leak and also mandating repairs… it was a great time to remind ourselves and update the article – we hope you enjoy!
Ways to Electronically Access Data
In this article we review the various ways to access our electronic information and review the major differences between our New Total Vault and just regular Account View Access.
Personal Property Tax Growth Versus Assets
With multiple comments from many directions about the rising costs of personal property we set off to do an initial analysis on just why it seems personal property taxes are digging into our pockets a bit deeper.
Our findings suggest it important to take personal property taxes into consideration, especially when dealing with our Real Estate Assets.
Capital Market Comments –
It’s all about the FOMC – Federal Open Market Committee
Last month, here in great detail the FOMC, headed by Chair Jerome Powell made statements that led market participants to expect a lowering of rates – TODAY!
If they do not lower rates later today, market participants may be disappointed…. we would not, as our beliefs are that rates cuts should be used for more pronounced economic events…. if they do lower rates, it will likely not be a continued lowering, which is a great compromise for all!
Have a Great Day – Talk to you at the end of August!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
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Posted in Economy, FOMC, General Financial Planning, Insurance, Interest Rates, Investing/Financial Planning, Market Comments, Monthly Review, Podcast, Video, Why
Tagged Account View, FOMC, Interest Rates, Property Tax, Rate Decision, Rates, Vault