On Wednesday, September 20, the U.S. Federal Reserve announced its decision to hold rates steady at the 22-year high of 5.25 – 5.5%, marking its second pause since its aggressive mission to curb inflation last year. While the decision to maintain rates did not surprise most investors, uncertainty remains as Chairman Jerome Powell took a hawkish tone to signal that rates will likely stay higher for longer, with another hike on the horizon before the year-end.
In this special manager conversation, Sightline Wealth Management’s Warren Gerow and Etienne Bordeleau-Labrecque, vice president and portfolio manager of Ninepoint Partners, examine the Fed’s conflicting actions and comments to provide comprehensive insights into everything investors need to know about this rate pause.
Specifically, Gerow and Bordeleau-Labrecque discuss:
- Why the Fed’s comments demonstrated a more hawkish tone than expected
- How the Fed’s stance has changed and how this may impact the economy moving forward
- The different ways investors are interpreting the Fed’s comments and which one seems the most plausible
- The initial and potential long-term impacts of the pause in rate hikes on the markets
- How a growing GDP and other economic factors may impact Fed policy
- The current state of the Treasury market and how it may evolve moving forward
- The potential impacts of a recession on both the Fed’s and Bank of Canada’s rate policy
If you have any questions regarding the Fed’s recent actions and how they may impact your portfolio, please do not hesitate to contact us. Your trusted team at Sightline Wealth Management will continue to monitor key economic and inflation data to keep you and your portfolios up to speed.
Important Information:
Warren Gerow is an independent investment wealth consultant at Sightline Wealth Management.
Sightline Wealth Management LP (“Sightline”) is an investment dealer and is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Sightline provides management and investment advisory services to high-net-worth individuals and institutional investors.
Sightline Wealth Management LP is a wholly owned subsidiary of Ninepoint Financial Group Inc. (“NFG Inc.”). NFG Inc. is also the parent company of Ninepoint Partners LP, it is an investment fund manager and advisor and exempt market dealer. By virtue of the same parent company, Sightline is affiliated with Ninepoint Partners LP. Information and/or materials contained herein is for information purposes only and does not constitute an offer to sell or solicitation to purchase securities of any issuer or any portfolio managed by Sightline Wealth Management or Ninepoint Partners, including Ninepoint managed funds.
Sightline Wealth Management (“Sightline”) makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, Sightline assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Sightline is not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Past performance is not indicative of future performance. Please speak to your Advisor regarding the suitability of information provided in this article for you. The opinions, estimates, projections and/or recommendations contained in this document are those of the author as of the date hereof.