Four Things You Need to Know about the FOMC Rate Raise
The Federal Open Market Committee (FOMC) voted today, December 14, 2016, to raise rates by 25 basis points.
Here are the 4 things you need to know:
1) The increase in rates should directly influence the returns for local government investment pool (LGIP) investments in a positive manner. Yields should move up.
2) With this gradual raise, the Committee expects moderate expansion in economic activity and strengthening of labor market conditions.
3) LGIP rates under Public Trust Advisors, LLC management have been steadily on the rise since the beginning of 2015.
4) Based on the dot plot, the FOMC noted that three additional rate hikes are expected in 2017. The fragile state of the global economy will require the Fed to move cautiously as it continues to look at tightening monetary policy.
Please contact a Public Trust Advisors, LLC representative if you have any questions, would like more information on public funds management, or simply how you can get involved. We wish you a happy and successful new year!
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