Federal Reserve Raises Funds Rate by 50 Basis Points

By Tom Burnett CFA On May 4, 2022, the Federal Reserve issued its May meeting statement with the announcement of a hike in the funds rate target of 50 basis points. The key rate is now in a range of 0.75-1.0%. In its announcement, the Fed made it clear that inflation is too high and...

By Tom Burnett CFA As bad and frustrated as equity investors must feel so far this year, the world of fixed-income investing is far worse.  (The information on the returns comes from the April 28, 2022 issue of WSJ.com).  There is no ‘safe haven’ in the fixed-income world this year. The Index of…

By Tom Burnett CFA On April 19, 2022, the International Monetary Fund (“IMF”) lowered its estimates for global GDP growth from its projections made in January and last October.  The new Report listed uncertainties from inflation and the Russian invasion of Ukraine as the primary reasons for the…

By Tom Burnett CFA With help from the Research Department of the St. Louis Federal Reserve Bank, we will attempt to explain in broad outline form how the Fed manages its balance sheet assets and liabilities. The research materials from the St. Louis Fed are available on line for readers who would like…

By Tom Burnett CFA On April 13, 2022, the Bureau of Labor Statistics reported the Producer Price Index (“PPI”) for March. The PPI rose 1.4% for the month, following increases of 0.9% in February and 1.2% in January. For the 12 months ended March 2022, the PPI rose 11.2%, the highest figure since…