Rates higher for longer? Implications for equity investing Investor sentiment has shifted from one of optimism for Fed driven rate cuts in 2024 to one of a delay for rate cuts to as late as early 2025. While this is based on recent economic data showing a resilient economy to already elevated rates, a “higher…
We may have seen the last rate hike, but when will we see the first cut? Entering 2024 it was widely believed that interest rate cuts were on the horizon, as policy makers set the tone at the December FOMC meeting by increasing their interest rate forecast to three cuts, previously at two for 2024.…
Bank Board Strategic Business Planning Presentation: 2024-2026 “Challenge Brings Opportunity” Objectives for the Presentation: To provide an understanding of the current and anticipated operating environment which community based financial institutions face in the second half 2024/2025/2026 and the related key elements that institutions must consider and understand To present the primary challenges which…
Addressing the “Higher for Longer” Rate Environment for the Balance of 2024 Now that we are officially in the ‘higher for longer’ operating environment, how does that impact the balance sheet strategy for the remainder of 2024? Are there tactics that can be implemented in the short term to mitigate the impact of continued higher…
U.S. inflation registered in at 3.0% year over year increase in June, a decrease of .3% from the month of May and was .1% below consensus. While the month over month Consumer Price Index increase came in at -.1%, this continues to keep rate cuts in play for the September meeting. Recent data on household…
Interest rates are near the top of the range again, creating an investment opportunity Market expectations were initially projecting it to be a better year for fixed income investors, as many economists thought we would be in a recession by now or one looming right around the corner and interest rates would be lower. …
Since the beginning of 2021, the 10-year Treasury note has risen by about 70 basis points in yield. This rapid rise in rates has created high volatility across bond and equity markets, and as such, it is fair to question if and how the Federal Reserve may intervene to keep long-term rates low. We…