The Fed’s Message: Patience and No Change in Interest Rate Policy

In this episode, Liz Ann Sonders and Kathy Jones examine today's FOMC conference and its influence on the economy and monetary markets. The Fed's message was among patience, with no change in rates of interest policy. While the Fed acknowledged some care about inflation, Fed Chair Powell said he thinks that the current interest rate is high enough to bring inflation down in the long run. The Fed also announced that they will begin tapering their quantitative tightening policy. The conversation also touches on the effect of bond yields on the equity market, the recent drop in commodity rates, and the issues about increasing debt and deficits.

Finally, Kathy and Liz Ann offer their outlook on next week's indicators and upcoming financial information.

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Efficiency might be affected by threats connected with non-diversification, consisting of financial investments in particular nations or sectors. Additional dangers may likewise include, however are not limited to, investments in foreign securities, specifically emerging markets, real estate financial investment trusts (REITs), set income, small capitalization securities and products. Each private financier ought to consider these risks thoroughly before investing in a particular security or method.

Currency trading is speculative, volatile and not appropriate for all investors.

Mortgage-backed securities (MBS) may be more sensitive to interest rate changes than other set income financial investments. They are subject to extension risk, where borrowers extend the period of their mortgages as rates of interest increase, and prepayment danger, where borrowers pay off their home mortgages earlier as interest rates fall. These threats might reduce returns.

Correlation describes a statistical relationship in between values, whether favorable (one number goes up and another also increases) or unfavorable (one number goes up and another decreases). Observed correlations can be strong or weak. Connection works because it can typically suggest a predictive relationship..

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The Fed's Message: Patience and No Change in Interest Rate Policy

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