George Hosfield, CFA, discusses Ferguson Wellman's quarterly strategy titled, "Inflation's Flame Flickers," which addresses the narrow market leadership, the impact of higher interest rates on inflation and how assets are priced at this stage of the economic cycle.
George Hosfield, CFA, discusses the firm's quarterly strategy titled "Stalemate," which highlights the Fed's ongoing battle to tame inflation along with our views on the health of the banking industry and capital market expectations for the balance of the year.
Director and Chief Investment Officer George Hosfield, CFA, discusses the Fed raising interest rates, peaking inflation and our view on equities and volatility across all asset classes in our Investment Strategy titled, “Balancing Act.”
For the first time in nine months, the Federal Reserve approved a quarter-point interest rate cut on Wednesday, bringing the Fed funds target range between 4.0 and 4.25%. The rate cut was widely expected, resulting in minimal market reaction after the announcement—unsurprising, given the strong rally in stocks and bonds leading up to this week.
This week has left many wondering how all the puzzle pieces fit together. On one hand, we have a clear weakening in the labor market, yet the stock market continues to soar to new all-time highs. Toss in some mixed inflation reports and that may leave some questioning if a few of the puzzle pieces are missing from the box.
On Wednesday, in a widely expected move, the Federal Reserve cut the policy interest rate by 0.25% to a new range of 4.25% - 4.50%. This brings cumulative interest rate cuts to 1% for calendar year 2024.
