On Thursday, the Federal Reserve, as anticipated, lowered key interest rates by 25 basis points.
The Committee noted recent data indicates that economic growth remains steady. Labor market conditions have eased somewhat since earlier in the year, with a slight increase in the unemployment rate, which remains low overall. Inflation is moving closer to the Committee’s 2 percent goal but is still somewhat above target.
The Committee aims to achieve maximum employment and stable inflation at 2 percent over the long term, viewing risks to these goals as generally balanced. Acknowledging economic uncertainties, the Committee is attentive to both aspects of its dual mandate.
To support these objectives, the Committee decided to lower the federal funds rate target range by 0.25 percentage points to 4.5–4.75 percent. Incoming data, economic trends, and risk balance will guide any future adjustments to the rate. The Committee will also continue to reduce its holdings in Treasury securities, agency debt, and mortgage-backed securities, reaffirming its commitment to maintaining maximum employment and bringing inflation down to 2 percent.
In evaluating monetary policy, the Committee will continue closely monitoring new information and its economic implications. It remains ready to adjust policy if emerging risks threaten its objectives. This assessment will consider a broad range of data, including labor market trends, inflation pressures, inflation expectations, and financial and international developments.
https://www.federalreserve.gov/newsevents/pressreleases/monetary20241107a.htm
https://www.cnbc.com/2024/11/07/fed-meeting-live-updates-traders-anticipate-november-rate-cut.html
Important Information:
Warren Gerow is an independent investment wealth consultant to Sightline Wealth Management.
Sightline Wealth Management LP (“Sightline”) is an investment dealer and is a member of the Canadian Industry Regulation Organization (CIRO) 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.
The opinions and information contained in this article are those of Sightline Wealth Management (“Sightline”) as of the date of this article and are subject to change without notice. Sightline endeavours to ensure that the content has been compiled from sources that we believe to be reliable. The information is not meant to be used as the primary basis of investment decisions and should not be constructed as advice. Each investor should obtain independent advice before making any investment decisions.