Listen to my Special Market Podcast for an update on the latest market gyrations.
Dear Sheryl,
Clearly, I'm very disappointed in Fed Chairman Jerome Powell's comments and the Federal Open Market Committee (FOMC) statement this afternoon. It simply wasn't dovish enough. And Wall Street agrees, as the Dow and S&P 500 have dropped more than 1%. As expected, the FOMC unanimously voted to raise key interest rates by 25 basis points. The Fed funds rate is now at 2.25% to 2.50%, which is the highest level since 2008. What was shocking was the Fed's announcement that it would raise key interest rates two more times in 2019. While that's down from the three interest rates forecast back in September, Wall Street and I were looking for the Fed to pause raising rates in 2019. Typically, the Fed does not fight market rates. And, as we've discussed, Treasury yields have been falling, with the 10-year Treasury now sitting near 2.8%. To further discuss the surprising FOMC statement today, I've recorded a brief Special Market Podcast. You can listen to today's podcast here. If you encounter any technical issues with playing the recording, please contact my customer service team, and they’d be happy to get you squared away. Sincerely, Louis Navellier
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