Public Trust Advisors Blog

FOMC Moves... Again!

Posted on Thu, Mar 16, 2017
 
March 16, 2017
 
The Federal Open Market Committee (FOMC) meeting concluded yesterday at 2:00 p.m. (EST). As was widely expected, the FOMC raised the target range for federal funds to 0.75-1.00 percent. This is the third 25 basis point increase in 15 months.
 
The FOMC "Dot Plot" released following yesterday’s meeting reflects the expectation of two more hikes this year followed by three additional hikes the following year. The FOMC statement noted that “in view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 0.75-1.00 percent.” 

“The Committee expects that economic conditions will evolve in a manner that will warrant gradual increases in the federal funds rate” the FOMC said in its statement and reiterated that “with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace, labor market conditions will strengthen somewhat further, and inflation will stabilize around two percent over the medium term.” The next FOMC meeting will be on May 3, 2017. At the present time, the market is not expecting another rate hike at that meeting.
 
Investment management services for the public sector
*Source: Bloomberg 
 
 
Disclaimer: This communication is for informational purposes only. All information is assumed to be correct but the accuracy has not been confirmed and therefore is not guaranteed to be correct. Information is obtained from third party sources that may or may not be verified. The information presented should not be used in making any investment decisions and is not a recommendation to buy, sell, implement, or change any securities or investment strategy, function, or process. Any financial and/or investment decision should be made only after considerable research, consideration, and involvement with an experienced professional engaged for the specific purpose. All comments and discussion presented are purely based on opinion and assumptions, not fact. These assumptions may or may not be correct based on foreseen and unforeseen events. Past performance is not an indication of future performance. Any financial and/or investment decision may incur losses.

Tags: Federal Reserve, LGIP Rates, The Fed, Investing Public Funds, LGIP Administration, federal open market committee, Safety and Liquidty, Public Trust Advisors, FOMC, investment managment for the public sector

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