Public Trust Advisors Blog

4 Things You Need to Know about the FOMC Rate Raise

Posted on Wed, Dec 14, 2016

Four Things You Need to Know about the FOMC Rate Raise

Fed Raise.png
 

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!

 

*The views expressed within this material constitute the perspective and judgment of Public Trust Advisors, LLC at the time of distribution and are subject to change. Nothing contained herein should be construed as investment, legal, business, tax, or accounting advice. You should consult your own advisors as to such matters and related matters concerning the information provided and its suitability for you. The information contained herein does not purport to contain all of the information that may be required to evaluate any investment options described herein. None of Public Trust Advisors or any of its affiliates make any representation or warranty, express, or implied as to the accuracy or completeness of the information contained herein, and nothing contained herein shall be relied upon as a promise or representation whether as to the past, current, or future performance. No representation is made as to its accuracy or completeness. It should not be construed as an offer or to purchase/sell any investment.  Any financial and/or investment decision may incur losses.  Past performance is no guarantee of future results. 

Tags: The Fed, LGIP Rates, Federal Reserve, FOMC, 2016 December Rate Hike

Subscribe via E-mail

Latest Posts

Posts by category