The Fed delivers on the dovish side

Mar 22 18:03 2019 Print This Article

The Federal Reserve (Fed) held the target range for the U.S. federal funds at 2.25%-2.50% at its meeting on Wednesday. This outcome was in line with market expectations. In addition, the Fed indicated they do not expect to hike rates again in 2019 and only expect one hike in 2020.

The statement released by the Fed indicates the labour market remains strong, but economic activity has slowed from the fourth quarter. They also see signs that household spending and business investment are slowing. Inflation is described as declining due to energy prices, as core inflation remains near 2.00%.

The Summary of Economic projections released after the meeting showed downgrades in the Fed expectations for future growth and inflation with real gross domestic product (GDP) growth declining from 2.3% to 2.1% in 2019 and personal consumption expenditures (PCE) inflation declining from 1.9% to 1.8%. Longer run growth and PCE inflation expectations remain unchanged at 1.9% and 2.0%, respectively.

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Trimark Investments Blog

As one of Canada’s leading investment management companies, Trimark Investments is singularly focused on putting investors' interests first. Invesco Canada offers a diversified suite of investment solutions to investors across the country and around the world. The blog is comprised of portfolio managers, who are often asked about their views on various investment-, market- and economy-related topics and how these views impact investment decisions. Trimark Investment blog intends to answer the questions Invesco Canada is frequently asked.

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