MFA Musings: 6/24/19
Reflection on Reflection.
Today’s Title: Reflection on reflection.
Last week, I wrote about reflecting on the past few weeks speculation of the FOMC and the perceived need to lower interest rates. I stated, “I think we all need to take a step back and think clearly about the question being debated – Will the FOMC lower the Federal Funds rate any time soon?”.
I want to thank all of you for your comments on employment issues and economic expansion. It is always helpful to hear that many of you see the same outlook.
The US unemployment rate is below 4.00%, and inflation is roughly 2.00%. The FOMC’s goal is price stability and full employment.
As I pointed out last week, I struggle to see how the FOMC lowers the Federal Funds rate in any significant amount with the overall metrics of the USA. And, at the same time, the Federal Funds futures show three 25 basis point cuts this year (yes 2019). A year ending rate of 1.50% is projected by the futures market.
Contact your MFA advisor to discuss ways to grow profitability with an inverted yield curve. All of us at McQueen Financial are dedicated to your long-term success.
Have a great week!