FOMC

This was potentially a telling week for interest rates in America on the extreme ends of the yield curve. Way out on the right of the curve is the 30-year treasury bond. Its yield is what lenders to the American government can expect to be paid for the long-term loan. It reached 5.18% earlier this week, the highest level since 2006 (see chart above).

In Shakespeare’s Romeo and Juliet, Juliet reflects that “a rose by any other name would smell as sweet.” In other words, the essence of the thing (in her case Romeo), not the label, is what truly matters.

The Federal Reserve left the door ajar at Wednesday’s Federal Open Market Committee (FOMC) meeting, not fully open nor closed, but just wide enough to keep markets guessing about the next steps.

Markets like stability whether its economic, geopolitical or otherwise.  Stability helps buyers and sellers agree on the current and potential future values of a variety of financial and real estate assets, thus driving their prices.  As stability wanes, the spectrum of expected outcomes stretches, inviting a broader range of opinions about potential future values.

Like the first crisp breeze that signals summer’s end, the Federal Reserve’s decision to lower the overnight interest rate on Wednesday suggests a chill in the economic air, one marked by growing concern over the labor market. 

Every August since 1982, the Kansas City Branch of the Federal Reserve System hosts an event in Jackson Hole, Wyoming.  It’s like an economic summer camp, although they probably forego the sticky fingers that come with s’mores.  The idea is to foster open discussions about the economy, exchanging ideas and probably a few barbs.  Typically, the event centers around a s

The Federal Reserve heavily influences the American economy.  Every six weeks the Federal Open Market Committee (FOMC) gathers to determine the correct course for monetary policy; they do this by setting the Fed Funds Rate (the amount charged for overnight loans between banks).  In short, they are trying to strike a balance between controlling inflation and supporting the labor market

Federal Reserve Chair Jerome Powell addressed the press Wednesday following the Federal Open Market Committee’s decision to keep the overnight interest rate unchanged.  During the Q&A, he offered an assessment of the economic outlook in light of recent tariff increases.  Powell emphasized that while the U.S.

Jury duty is a civic responsibility where citizens are randomly selected to serve as jurors in legal trials.  Having served as a jury foreman about a decade ago, I can attest to the deliberative process Americans are fortunate to have when considering the facts of important moments in the lives of the parties involved in a case.  As of this writing, I just finished my day of jury duty

On Wednesday, America’s central bank made its first downward adjustment to its Federal Funds Rate since the pandemic was just getting started back in March 2020.  This interest rate is what banks charge each other for overnight loans when their cash reserves aren’t adequate to meet weekly regulatory requirements.  While it does not impact other rates directly, the Fed Fund