Part of the Fed’s mandate is to target inflation and maximum employment when charting its path of rate hikes. Fiscal stimulus and economic growth are inflationary in nature. A protectionist state will only further the inflationary outlook for the US and…
I. FOMC Meeting, Moving Away From Accommodative To Neutral Hawkish sentiments once again emanated from Fed Chair Jerome Powell last Wednesday as the Federal Reserve unanimously hiked the federal funds’ upper rate by 25bps to 2.00%. The officials’ rate projections…
The markets continued its risk-on sentiment from the previous week with bond yields globally edging higher, despite increased tensions regarding trade tariffs. The 10-year U.S. Treasury rate and domestic stock indices all ended the week higher. The 10-year treasury was…
Between positive key economic data releases and rhetoric from Washington D.C., market practitioners had their hands full last week. The headline unemployment rate fell to an 18-year low at 3.8% (many believed it would remain steady at 3.9%). Both equity…
Greek crisis déjà vu: Geopolitics and trade tensions consumed global markets over the past week triggering a risk-off sentiment and a global flight to safe-haven assets. U.S.-Chinese Trade Talks: On again, off again – seems to be the best way to…
While geopolitical risks linger, including uncertainties regarding U.S.-China trade talks, U.S. relations with North Korea and sanctions on Iran, what seems to be clear for market practitioners is that the U.S. economy is expanding and is on an upswing. Ten-year…
Geopolitical tensions dominated market headlines last week as the Trump Administration withdrew from the Iran nuclear deal along with no signs of the U.S. and China trade tensions abating. However, in a rapid turn of events on Sunday, the Trump…
The Fed’s dual mandate of price stability and maximizing sustainable employment seem to be on track. Labor markets continued to tighten as the Fed achieved its inflation target of 2% last week. While the Fed has already embarked on its…
The markets continue to gyrate, with treasury yields reaching multi-year highs; and then slightly dropping late last week as corporate earnings continue to surprise on the upside. 1.Ten-Year Treasury breaks Key 3% Level – for the First Time in nearly…
