Fed Interest Rate Decision

In a widely anticipated move, the FOMC announced on Wednesday that it was hiking interest rates by 50 basis points—the largest increase since 2000. This came as no surprise, with everyone from commentators, economists, money managers, and political pundits expecting the aforementioned half-point hike. This leaves the Fed Funds lower target (the overnight rate) at 0.75% and the discount rate …

Fed Interest Rate Decision

As expected, the Federal Reserve announced today its first interest rate hike since 2018—25 basis points. This was not a surprise; market participants expected this. Even though some Fed officials briefly hinted at the possibility of a 0.50% hike at one point, they ended up forgoing that option, likely to avoid further destabilizing the markets after the bout of volatility …

Employment Situation

The Employment Situation is a report by the Bureau of Labor Statistics that gives an overview of the overall employment outlook of the US economy. The report does not include those employed in agriculture because of the seasonal nature of their work. This report obtains these numbers from 142,000 businesses and government agencies to track the new jobs added in …

Federal Open Market Committee

Last Wednesday, the minutes of the last Federal Open Market Committee (FOMC), held in late July, were released. After a year of some of most dovish monetary policies in the Federal Reserve’s history, members of the FOMC finally indicated they were on track to begin scaling back their gargantuan asset-purchase program later this year. The program, which was established at …

10-Year Treasury Rate

The 10-Year Treasury Rate is the yield received for investing in a US government-issued bond that has a maturity of ten years. When the yield rises, it means that there is less demand for US Treasuries, and they are therefore trading at a lower price. Conversely, when the yield declines, it means that investors are buying more Treasuries and driving …