Weekly Update:

Good morning!

Democracy is done until 2020 – Yay – No more calls from an unknown number to my cell phone.

Yesterday, the Federal Open Market Committee (FOMC) met in Washington DC.  They reviewed a lot of economic data and determined that they did not need to increase the Federal Funds (Fed Funds) rate.

While we agreed with the FOMC, we did see the Producer Price Index (PPI) annual growth climb to 2.99% in October.  This is the fastest pace of price increases in the last six years.  This will raise some concern of higher prices and resulting inflation.  Although, the price of oil spiked in October up to $76 a barrel.  Since then it has declined to $59 a barrel.  Therefore, I believe that this high PPI number will be less impactful than many may believe.

All eyes will be focused on inflation and the FOMC’s response for the next year.  Given the economic view today, we expect the FOMC to maintain their slow deliberate march to 3.00% on the Fed Funds rate.

Contact your advisor to discuss ways to grow profitability in this volatile market.  All of us at McQueen Financial are dedicated to your long-term success.

Have a great week.

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