All Posts Tagged: interest rates

U.S. Outlook: Fed balance sheet reduction is right around the corner

Scott Anderson
Chief Economist

The summer is just flying by, and that means another FOMC rate decision and statement next week.

Graph showing trends as a result of Fed balance sheet reductionThe market focus will be on the FOMC statement and any additional clues surrounding the timing of the Fed’s balance sheet adjustment policy.

For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on July 21.

Key observations:

  • There is a small, though unlikely, chance the FOMC could announce the balance sheet reduction at next week’s meeting.
  • We expect the Fed to ultimately reduce its balance sheet by around $2-2.5 trillion.
  • As the Fed shrinks its balance sheet, it could be good news for savers who have been earning very little interest in their bank deposits.
  • Only one more quarter-point rate hike for 2018 and another in 2019 are fully priced into the market today.

 

Click here to read my full report.

 

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Investment Insights: Excerpts from our Q2 2017 report

Wade Balliet
Posted by Wade Balliet
Investment Strategy
Photo of the US Treasury building, with historic male statue in front.

Under the new plan, Fed officials should be able to evaluate the market’s reaction to the reductions before the more-than-likely third and final rate hike in December.

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U.S. Outlook: Where did inflation go?

Scott Anderson
Chief Economist
Graph showing rises and (recent) dip in consumer inflation trends.

As recently as March, inflation appeared to be heating up.

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Investment Insights: The odds of a 2019 recession

Wade Balliet
Posted by Wade Balliet
Investment Strategy
Silhouette of a business man watching red and yellow trend arrows going downward to the right, with a cloudy sky visible in the background.

Yes, the U.S. economy’s growth has been suppressed compared to historical data, but that may end up being a silver lining.

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Millennials: Insights on their homebuying activities & intentions

Victor Polich
Mortgage Banking
Young couple sitting on floor, painting an interior wall; but the woman is using a small paintbrush and paints a symbol of a small blue house on the wall.

When it comes to homebuying, it’s not uncommon to hear that millennials are breaking with the traditions of their parents and grandparents.

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