As mentioned last week, the first in-person large conference in some time is going on this week…. It is very nice to see everyone “In Person” …. we had forgotten just how full the schedules are during these events … full day ahead …
Briefly our two most important topics so far!
FOMC – Federal Open Market Committee Thoughts for Today’s Announcment
Just after lunch hour today the FOMC lead by Jerome Powell are set to raise rates (Fed Funds Rates – think overnight checkbook rate) by .75% (75 basis points) ….
The experts here say focus on the future (for the record we have been crowing on looking forward throughout this slowdown see here and here – digressing) as the Wall Street chatter is a step down possibility at the next meeting to a .50% — a firming of the higher .75% increase as the next meeting OR an even softer talk of maybe no .50% would be market moving… again according to our experts…
Cybersecurity – No Email of Social Security or the Like Documents
Condensing this event into one important topic – we all need to make sure we do not send documents with Social Security numbers or the like through email…. the hackers are just too good…
This is more of a reminder for all… but as we enter tax season next year, a good reminder!
Alright, that is it for now, a quick jog and workout… then to breakfast and back in doors for a full scheduld of events today!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
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
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Posted in Economy, FOMC, General Financial Planning, Interest Rates, Investing/Financial Planning, Market Comments, Retirement Planning
Tagged 1 Year, 10 Year, FOMC, Interest Rates, Liz Ann Saunders