Federal Reserve Maintains Bond Purchase ProgramThe Federal Reserve has decided to keep monthly bond purchases at $85 billion for now, saying that economic variables need to demonstrate evidence of long-term sustainability. The Committee pointed to tightening financial conditions that could impede the economic recovery as a factor behind the decision. In line with the increase in treasury yields, borrowing costs are also going up. For the time being the Fed is still guiding toward near zero for its target interest rate. However, given the unprecedented low interest rate environment, it is imminent that the Fed will eventually raise interest rates. Exactly when is another question, but it will happen. More likely, the Fed will be encouraged to start hiking rates when the US unemployment rate dips below 6.5% or inflation exceeds 2.5%.

By CWAN Global Press

The Canadian Wealth Advisors Network (CWAN) was established in March of 2009 as an online forum where investment professionals share ideas and best practices that allow them to meet the growing needs of their clients. As the CWAN community grew and evolved, it was expanded to serve both advisors and investors. Garnet O. Powell, MBA, CFA is the Editor-in-Chief of the Canadian Wealth Advisors Network (CWAN) magazine. He is an investment management professional with more than 20 years of experience. linkedin.com/in/garnetpowell

Leave a Reply

Your email address will not be published. Required fields are marked *

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

will use the information you provide on this form to be in touch with you and to provide updates and marketing.