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2 weeks ago | 
advisorperspectives.com | Liz Ann Sonders |Kathy Jones |Jeffrey Kleintop |Kevin Gordon
Stocks have surged since the White House backed away from sweeping tariffs imposed in early April, although U.S. tariff policy remains uncertain and is a potential driver of continued volatility. Higher tariffs could slow economic growth while raising inflation—which is still above the Federal Reserve's 2% target rate—complicating the Fed's move toward cutting interest rates.
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2 months ago | 
advisorperspectives.com | Liz Ann Sonders |Kathy Jones |Jeffrey Kleintop |Kevin Gordon
Sign me up to receive email newsletters from VettaFi Advisor Perspectives Past performance is no guarantee of future results, and the opinions presented cannot be viewed as an indicator of future performance. Investing involves risk, including loss of principal. Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.
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Dec 6, 2024 | 
advisorperspectives.com | Kathy Jones
It looks like another bumpy ride is in store for fixed income investors in 2025, with a wide range of potential outcomes. Treasury yields have been on a roller coaster in 2024. For much of the year, the soft-landing scenario of moderate growth and falling inflation amid low unemployment drove bond yields lower, but upward revisions to growth estimates and concerns about policy proposals that could boost inflation in 2025 led to a rebound.
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Sep 19, 2024 | 
advisorperspectives.com | Kathy Jones
The Federal Reserve lowered the target for the federal funds rate by 0.50%, or 50 basis points, to a range of 4.75% to 5.0% at its September meeting. The decision to reduce the policy rate was not unanimous. For the first time since 2005, there was one committee member that dissented. The accompanying statement, Summary of Economic Projections and comments from Fed Chair Jerome Powell indicated that more rate cuts are likely in the coming months.
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Sep 13, 2024 | 
advisorperspectives.com | Kathy Jones
Past performance is no guarantee of future results, and the opinions presented cannot be viewed as an indicator of future performance. Investing involves risk, including loss of principal. Supporting documentation for any claims or statistical information is available upon request. Fixed income securities are subject to increased loss of principal during periods of rising interest rates.
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Aug 9, 2024 | 
advisorperspectives.com | Kathy Jones
Sign me up to receive email newsletters from VettaFi Advisor PerspectivesAll expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.
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Aug 1, 2024 | 
advisorperspectives.com | Kathy Jones
As expected, the Federal Reserve kept the target range for the federal funds rate at 5.25% to 5.5% at its July meeting, but it opened the door to cutting rates at an upcoming meeting. The decision to leave the policy rate unchanged was unanimous. This meeting was not accompanied by an updated Summary of Economic Projections, but the accompanying statement and comments from Fed Chair Jerome Powell at the press conference support our expectation that a rate cut is likely coming in September.
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Jun 12, 2024 | 
advisorperspectives.com | Kathy Jones
Interest rates have risen since the start of the year, contrary to consensus expectations. The major driver behind the shift up in rates was change in expectations about the path of Federal Reserve policy. Coming into the year, based on federal funds futures markets, the market expected up to six cuts in the Fed's policy rate —the federal funds rate—which would have brought it down by 150 basis points (or 1.5 percentage points).
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May 21, 2024 | 
advisorperspectives.com | Liz Ann Sonders |Kathy Jones |Jeffrey Kleintop
Yet Macklem followed his statement on rates by saying, "there is a limit to how far they can diverge—we're certainly not close to that limit." This suggests he sees potentially negative consequences if Canada's policy rates are cut too far below those of the U.S. But in Europe, Governor Fabio Panetta, head of Italy's central bank and a member of the ECB's Governing Council, suggested that higher Fed rates for longer would tighten global financial conditions and make even deeper eurozone rate...
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May 3, 2024 | 
advisorperspectives.com | Kathy Jones
As expected, the Federal Reserve kept the target range for the federal funds rate at 5.25% to 5.50% at the May meeting of the Federal Open Market Committee (FOMC). Citing recent elevated inflation readings, the statement accompanying the announcement indicated that FOMC members consider it too early for rate cuts. Meanwhile, the Fed is planning to "taper" its quantitative tightening program in June by reducing the dollar amount of Treasuries it allows to mature without reinvestment.
