The calendar has now turned to September, and that means another FOMC meeting is on tap with the results slated for announcement on September 18th. Based on “Fedspeak” surrounding the recent Jackson Hole conference, it appears as if there is some division among the policy makers on what the next step will be. Kevin Flanagan discusses the possible outcomes.
The past few weeks in “bond land” have been extraordinary. Kevin Flanagan provides his perspective on the latest inverted yield curve hysteria through comparison of the last UST 2s/10s inversion from December 2005–June 2007 to the current episode.
Last week, the Fed cut the federal funds target range by a quarter-point. And while you could say the Fed is back in data-dependent mode, it appears as if U.S. monetary policy is still leaning toward another rate cut this year. Kevin Flanagan discusses.
One overarching question that many investors ask is, Why is the Fed so intent on cutting rates? If judging solely on low unemployment and an impressive June jobs report, many wouldn’t think we should be having a rate-cut discussion. Kevin Flanagan explains why a July rate cut is still likely.
Although the money and bond markets appear to be “chomping at the bit” for a rate cut, expectations for such action at the recent FOMC meeting were low. Kevin Flanagan discusses the outcome of yesterday’s Federal Reserve meeting.