Higher for Longer - September 2023
While the Federal Reserve chose not to raise the Fed Funds rate last week, Chairman Jerome Powell made it clear during his post Fed meeting press conference that rates will stay higher for longer. This took some by surprise. After living through over a decade of interest rates near 0% the stock and bond markets are now digesting the idea rates may stay higher for longer, offering a real rate of return over time. Such digestion can cause uncertainty, fortunately uncertainty often creates the next set of opportunities.