Clarity and Uncertainty - March 2025
On Wednesday, March 18, the Federal Reserve (FED) held the Federal Funds interest rate steady at 4.25%-4.50% but adjusted the inputs used in its economic forecast. Higher tariff expectations led the FED to increase their PCE inflation forecasts by 0.3% to 2.8% for 2025 while at the same time downgrading their forecasts of GDP growth by 0.4% to 1.7% for the year. The FED continues to project two rate cuts in 2025 in their dot plot, but there remains much uncertainty around the timing of the expected cuts. Federal Reserve Chairman Jerome Powell made it clear that the Federal Open Market Committee (FOMC) is not in a hurry to cut rates and prefers to wait for further clarity on tariffs and other policies that may impact economic forecasts.
Spring is here! Spring is always a great time for a portfolio review. Whether it’s a review of current holdings, updating your advisor on changing cash needs, or a simple assessment of your allocation, this is a good time of year to touch base…
As expected, the Federal Reserve raised interest rates by 0.25% at their meeting Wednesday, March 16th. The median dot plot, the forward view of rate increases projected by policymakers, now expects six additional hikes in 2022 and 3-4 in 2023,…
On Friday, February 04, 2022, the Labor Department reported that the U.S. economy added 467,000 jobs in January. This far exceeded expectations of near-zero additional jobs. The unemployment rate increased to 4% from 3.9%, indicating more people…
During the Federal Reserve (Fed) meeting on Wednesday, January 26, the Fed set expectations for a March 2022 interest rate increase. The Fed highlighted the strong labor market and inflation levels that are well above targets as reasons to begin…
On Wednesday, December 15, the Federal Reserve (Fed) announced it will accelerate the pace (tapering) of its monthly bond purchases. In November, the Fed announced it would begin reducing its purchases of Treasury bonds by $10 billion per month and…
On Wednesday, November 3, the Federal Reserve (Fed) announced it would begin slowing the pace (tapering) of its monthly bond purchases. Currently, the Fed is purchasing $120 billion a month of securities split between Treasury bonds ($80 billion)…
