MFA Musings: 10/1/18
FOMC Raises Rates.
The Federal Open Market Committee (FOMC) raised the Federal Funds rate 0.25% to 2.25%. The FOMC telegraphed that they are looking at one more rate increase this year and potentially up to three more in 2019. This will result in a 3.00% to 3.25% Fed Funds rate by the end of 2019. The FOMC believes that the economy is doing well.
When I watch televised news, I see different views of the economy based on the source and the delivery, and a lot of political polarization sprinkled in. I have begun to keep the TV turned off and read a little more.
What I have gleaned, without the commentary noise:
• U.S Consumer Confidence Jumps to an 18-year high
• U.S. Core Inflation Unexpectedly Cools on Apparel and Medical Costs
• First-time U.S. jobless claims have fallen to the lowest level since December 1969
• U.S. consumer sentiment cooled in late September
The economy, employment, and consumer attitude are all going well. We see this by the difficulty of finding deposits (people are spending, not saving).
If you would like to have a conversation about consumer sentiment, please contact your advisor to discuss ways that we can help. All of us at McQueen Financial are dedicated to your long-term success.
Have a great week.
*Data Source: Bloomberg