TELFPlus Investment commentary
Miles Capital, Investment Advisor
June 14, 2018
As anticipated by the market, the Federal Reserve Open Market Committee (FOMC) met on June 12, 2018, and raised rates 25 basis points to 2%. We believe that they are on track to raise rates one to two more times this year, with a strong possibility of raising rates during their September meeting and a little less possibility during their December meeting. We also believe that the Federal Reserve is signaling that they will raise rates three times in 2019.
The Federal Reserve's monetary policy mandate is to support three specific goals: maximum sustainable employment, stable prices, and moderate long-term interest rates.
The economy has added over a million jobs in the first five months of 2018, with the unemployment rate currently 3.8%. For the first time in decades, there are more job openings than unemployed Americans who can fill them. Inflation is currently close to the Federal Reserve's 2% target. Both of these factors support the strong possibility of the Federal Reserve continuing to raise rates.
The views expressed herein are the current views of Miles Capital as the stated date and are provided for informational purposes only. They are believed to be correct, but accuracy and completeness cannot be guaranteed and should not be relied upon for legal or investment decision purposes. All expressions of opinion and predictions presented are subject to change wihtout notice. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any securit. Past performance is not a guarantee of future results.