At Ferguson Wellman, we are nearing the end of our Mid-Year Update events season, where we present updates to our yearly Investment Outlook and deepen our connections with clients and the community.
Hop, Skip and a Jump?
Bond Math
Principal and Head of Fixed Income, Brad Houle, CFA, discusses the math at work in fixed income investing and the relationship between bonds and interest rates.
Have Yields Peaked?
Paul Volcker assumed the chairmanship of the Federal Reserve in August of 1979 and within a year, had raised the target federal funds rate to an eye-popping 20%. This painful but necessary action broke the back of inflation which had run rampant for the prior decade.
Fear and Greed
Both fear and greed were on full display this week as the Federal Reserve raised the federal funds rate 50 basis points and announced that additional 50 basis point increases would be needed in the future. Fed Chairman Jerome Powell stated that the U.S. government would stop buying as many bonds on the open market in the coming months, effectively shrinking the Fed’s balance sheet and removing some liquidity from the system.
The Fed Hike Begins
Last week, the Federal Reserve made headlines after raising their benchmark interest rate by 0.25%. This week, the Fed remains in the spotlight due to comments made by Chairman Jerome Powell at Monday’s National Association for Business Economics annual conference.