« Older: Come out to Land Between the Lakes’ Woodlands Nature Station for Girl Scout Day, March 28th Newer: APSU’s Trahern Gallery 108 to display “Vast Planes to Quark’s Feel,” a senior thesis exhibition by Marcus Eiland »
Clarksville, TN – As was widely anticipated, the Federal Open Market Committee removed the “patient” language from the policy statement, but indicated that “an increase in the target range for the federal funds rate remains unlikely at the April FOMC meeting.”
The FOMC noted that “economic growth has moderated somewhat” (vs. January’s “expanding at a solid pace”). In its Summary of Economic Projections, Fed officials lowered their forecasts for GDP growth and inflation. The dots in the dot plot (expectations of the appropriate year-end level of the federal funds rate) generally moved lower, implying a lower expected path of short-term interest rates in the months ahead.In her post-meeting press conference, Fed Chair Janet Yellen indicated that the FOMC will begin to consider rate increases on a meeting-by-meeting basis beginning in June, but that does not mean that it will move at the time. Future policy decisions will be data-dependent.
She repeated that the Fed wants to see further improvement in the job market and be “reasonably confident” that inflation will move back toward the 2% target. She could not give a definition of “reasonably confident”, but said that the Fed will be watching job market conditions, wages, and inflation expectations.
The Financial Times described the Fed policy meeting result as “moonwalking” – appearing to move toward tightening, but actually expecting a much less aggressive path on short-term interest rates. The stock market rallied on the Fed news, but that merely fit into the pattern of large day-to-day swings in the major stock market averages. Bond yields dropped and the dollar gave back some ground.
Next week, Greece is still ticking and may blow up soon. The economic data releases could contain a surprise or two. The Consumer Price Index is expected to reflect a rebound in gasoline prices, but core inflation should remain low. Note that the week will be bookended by two important Fed speeches.
Vice Chair Stanley Fischer, who taught former Fed Chair Ben Bernanke, current European Central Bank President Mario Draghi, and former Treasury Secretary Larry Summers, will speak Monday. Yellen speaks at the end of the week (the last 15 minutes of stock trading). Both will talk about monetary policy.
Consumer Money Rates
Treasury Yield Curve – 03/20/2015
S&P Sector Performance (YTD) – 03/20/2015
US government bonds and treasury bills are guaranteed by the US government and, if held to maturity, offer a fixed rate of return and guaranteed principal value. US government bonds are issued and guaranteed as to the timely payment of principal and interest by the federal government. Treasury bills are certificates reflecting short-term (less than one year) obligations of the US government.
Commodities trading is generally considered speculative because of the significant potential for investment loss. Markets for commodities are likely to be volatile and there may be sharp price fluctuations even during periods when prices overall are rising. Specific sector investing can be subject to different and greater risks than more diversified investments.
Tax Equiv Muni yields (TEY) assume a 35% tax rate on triple-A rated, tax-exempt insured revenue bonds.
The information contained herein has been obtained from sources considered reliable, but we do not guarantee that the foregoing material is accurate or complete. Data source: Bloomberg, as of close of business March 19th, 2015.
Frazier Allen, WMS, CRPS, Financial Advisor with F&M Bank
Web Site: http://www.raymondjames.com/frazierallen
TopicsBonds, British Pound, Clarksville, Clarksville TN, Crude Oil, DJIA, Euro, F&M Investment Services, Fed, GDP, gold, Janet Yellen, Japanese Yen, Mexican Peso, MSCI EAFE, Nasdaq, Raymond James Investment Services, Russell 2000, S&P 500, Stocks, U.S. economy, U.S. Stock Market, United States, Weekly Market Snapshot
© 2006-2020 Clarksville, TN Online is owned and operated by residents of Clarksville Tennessee.