MFA Musings: 9/23/19
Consumers strength index.
Good morning and happy Monday!
It is a great Monday, as the Detroit Lions are undefeated for the year. 2 wins, 1 tie, and 0 losses. Not the 3-loss start I imagined they would have at this point. My surprise with the Lions reminds me of my surprise on the consumers continued strength. During this economic uncertainty (on TV), the consumer (watching Netflix) is not watching Broadcast TV and continues to spend. Clearly, low unemployment spurs confidence.
The FOMC met this last week and decreased the Federal Funds rate by 0.25% as expected. The messaging they provided on forward interest rate changes was muddy at best. We still expect another rate cut in the not too distant future, and the FOMC is hedging its position.
In other unique news, the New York Fed has been working to stabilize the Repo market, as interest rates skyrocketed last week. The NY Fed is injecting $75 billion in liquidity a day to keep things normal. Why? We are being told it is a timing issue. Clear as mud, and more to come.
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!