Fed Week. It’s a far more interesting Federal Reserve Interest Rate Decision Week than most. With such strong US economic growth in the third quarter — a long-signaled 4.9%— and inflation coming in (also as expected) at approximately 3.7% in September, the Federal Open Market Committee faces a truly significant economically intellectual choice. The bond market is placing nearly a 100% chance of no rate hike this week followed by an 80% chance of no hike rate hike in December. The bond market is still pricing in a hold followed by the first rate cut in June of 2024. The Fed is likely still in wait-and-see mode to determine if another rate hike is warranted. The good news of strong economic data creates bad news of inflationary pressure and the need to keep rates high or higher for longer. It is too early for the Fed to declare victory over inflation, and the Fed needs to slow down the economy further to get inflation under control. On the wealth planning front, we discuss the rent vs. buy debate and if it’s skewing towards renting in today’s market.
Click Here to Read the October 30, 2023, Economic Commentary
Click Here to Read the October 30, 2023, Investment Commentary
Click Here to Read the October 30, 2023, Wealth Planning Commentary
