Thought Leadership

Bulletin: The Fed, Wall Street, Indecision, and Bonds

October 23, 2015

In this piece, Portfolio Manager Joseph Abraham reviews the determinants of the Federal Reserve’s interest rate policy and responses both on Wall Street and the US bond market. Bulletin Highlights:

  • Low levels of inflation and job creation relative to the Fed’s targets significantly reduced support for a rate hike in the third quarter of 2015.
  • Given the Fed’s lack of transparency regarding their decision to raise interest rates, markets appear to have been looking more to underlying determinants of economic strength than the Federal Reserve itself.
  • Until the Fed announces a clearer position on interest rates, consumers and investors will rely less on their leadership and more on environmental economic factors to guide their spending and investment.

Please click on the link below to download the commentary.