Cutler Commentary

The Fed Meets Expectations

March 16, 2017

Blog Post Image



If the Fed raises rates when everyone expects it does it count as raising rates? Well, the bond market may not think so as it saw rates decline while stock markets generally moved higher. It appears that the widely anticipated rate hike by the financial markets resulted in a dud rather than a bang. Yes, the Fed did raise rates to a range of 0.75% to 1%, but it is apparent that the markets were bracing for a much more hawkish tone from the Fed. Maybe the latest forecast by the Federal Reserve Bank of Atlanta of a 1Q 2017 GDP of 0.9%  or the recent drop in oil prices had an impact on the Fed tone, however, whatever it was the market is not fearing a rapid increase in rates in the coming months.  "It is important for the public to understand that we're getting closer to reaching our objectives," Fed Chair Janet Yellen said during a post-meeting news conference. If only we knew what exactly they were. Regardless, it is important to also realize that this Fed will see a dramatic change over the next 6-12 months. So, whatever their thoughts or inclinations, eventually they will become lame ducks and all eyes will be focused on who President Trump will choose to fill the three vacant seats, and ultimately choose to run the Fed and the future of the Central Bank.



 

 

CATEGORIES

3 Minute Money Mile Events Financial Thoughts
WEBINAR: QUARTERLY MARKET UPDATE 3Q 2022Market Commentary 3Q22A Bear Market BlueprintWebinar: Quarterly Market Update 2Q 2022Market Commentary 2Q22Webinar: Quarterly Market Update 1Q22Market Commentary 1Q22Webinar: Quarterly Market Update 4Q21Market Commentary 4Q21Market Commentary 3Q21Webinar: Quarterly Market Update 2nd Quarter 2021Market Commentary 2Q21Beers with Bryan - Value and GrowthWebinar: Quarterly Market Update 1st Quarter 2021Market Commentary 1Q21Equity Income Commentary 1Q21Explaining the GameStop Short Squeeze ChaosWebinar: Quarterly Market Update 4th Quarter 2020Market Commentary 4Q20Market Commentary 3Q20Markets Reach All Time High in 2020Three Alternative Sources for Yield in Today's Low Rate EnvironmentMarket Commentary 2Q20Coronavirus and the Market Sell-OffCutler Comments on the Inverted Yield CurveMarket and Equity Income Commentary 2Q 2019Market and Equity Income Commentary 1Q 2019Market and Equity Income Commentary 4Q 2018Webinar: Cutler's 3rd Quarter 2018 Market OutlookMarket and Equity Income Commentary 3Q 2018Market and Equity Income Commentary 2Q 2018Webinar: The Impact of Rising Rates on the Mortgage MarketWebinar: Cutler's 1st Quarter 2018 Market OutlookMarket and Equity Income Commentary 1Q 2018Equity Income 4Q 2017Equity Income 3Q 2017Webinar: Estate PlanningWebinar: Cutler's 3rd Quarter Market OutlookWebinar: Cutler 2nd Quarter Market Outlook Equity Income 2Q 2017 CommentaryThe Bull Market Turns 8The Fed Meets ExpectationsCutler 4Q Newsletter Q4 2016 Market and Equity Income Commentary3rd Quarter 2016 Market CommentaryThe Glass Half Empty? An Optimist's View of the ElectionThe Fed Follows Shakespeare's ComedyXavier's Thoughts on the Fed MinutesSlow and Steady Wins the Race
Global Market

ARTICLES BY YEAR/DATE

2022 2021 2020 2019

Disclaimer

These blogs are provided for informational purposes only and represent Cutler Investment Group’s (“Cutler”) views as of the date of posting. Such views are subject to change at any point without notice. The information in the blogs should not be considered investment advice or a recommendation to buy or sell any types of securities.   Some of the information provided has been obtained from third party sources believed to be reliable but such information is not guaranteed.  Cutler has not taken into account the investment objectives, financial situation or particular needs of any individual investor. There is a risk of loss from an investment in securities, including the risk of loss of principal. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular investor's financial situation or risk tolerance.  Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary. No reliance should be placed on, and no guarantee should be assumed from, any such statements or forecasts when making any investment decision.
 

Cutler

Contact Us

info@cutler.com