As expected the Fed has announced a 1/4% hike in the Fed Funds rate which was totally baked into all stock and bond markets.
While we don’t fixate on the Fed Funds rate we certainly make note of it—and actually we are happier with higher rates. With our money market likely to toss off a current yield of near 2.2% we are at least earning a measurable return in our brokerage accounts which always seem to have too much cash.
The most important item will be the press conference to be held shortly with Fed Chair Powell. Do they think wages are going to shoot higher? Do they thing tariffs are going to stoke up prices? Is the outlook still for another rate hike in December and 3 next year?
We have to leave the office so won’t be able to watch the press conference–but in the end it probably won’t matter much at all–and even if markets react it would be rare for us to do one darned thing based on this 2 hour window.