The Federal Reserve has raised interest rates yet again, as widely expected, marking the 11th hike out of the past 12 meetings.
Despite a pause last time out, the central bank today raised the benchmark overnight rate 0.25% to the 5.25%-5.50% range — its highest level in 22 years. The move represents another attempt to rein in stubborn inflation, which has cooled to just under 3% but remains above the central bank’s 2% target.
The consensus is that the Fed is nearing the end of its hike cycle, but it clearly felt the need to act further with the economy remaining strong amid recession fears, consumer spending more than 4% in Q1 and the jobs market robust despite weakening slightly in June.
A hawkish Fed was predicted by markets this morning with stocks lower. The S&P 500 dropped from the highest level since April 2022, the tech-heavy Nasdaq 100 underperformed and Dow Jones Industrial Average wavered.
In a statement, the Federal Reserve said: "Recent indicators suggest that economic activity has been expanding at a moderate pace. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated.
"The U.S. banking system is sound and resilient. Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain. The Committee remains highly attentive to inflation risks."
It added: "In determining the extent of additional policy firming that may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments."
Advisors who expect an edge from alternatives' illiquidity premium – without understanding the underlying terms and explaining them to clients – have a world of learning to do.
The social influencer Tyler Bossetti pleaded guilty to wire fraud and aiding in the filing of false tax documents as a result of the real estate scheme, which ran from 2019 to 2023 and used platforms including Facebook and YouTube.
The latest LIMRA data release shows continued growth in RILAs, variable annuities, and FRD products, though researchers argue more education is still needed.
Indivisible Partners builds on its strategy to take turf in the independent space with its latest move in Colorado.
LPL's latest addition, a San Diego team defecting from RBC, represents a milestone for the broker-dealer giant's Strategic Wealth model for wirehouse breakaways.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave