The Fed Plans for Higher Rates
Provided by MidAmerica Financial Resources
The Federal Reserve, in recent years, has been committed to being open about its policy on interest rates. And that commitment was on full display in recent weeks.
In an early April speech, Fed Governor Lael Brainard said the central bank needs to act “quickly and aggressively” to drive down inflation. She indicated that upcoming interest rate increases could be higher than the Fed’s traditional 0.25 percentage point bump.
On the same day, San Francisco Fed President Mary Daly expressed her concern about inflation and suggested that higher prices are “as harmful as not having a job.”
In a speech to the Delaware Chamber of Commerce the following day, Philadelphia Fed President Patrick Harker said higher interest rates are needed to help manage rising prices.
There’s an old saying, “one’s a dot, two’s a line, three’s a trend.” Based on these most recent comments, it’s pretty clear there’s a trend among Fed officials.
Our team watches what Fed officials are saying and keeps an eye on how the markets interpret the news. If we see the need for a portfolio change, we’ll explain why we are charting a new course.
MidAmerica Financial Resources may be reached at 618.548.4777 or greg.malan@lpl.com www.mid-america.us
Securities and advisory services offered through LPL Financial, a Registered Investment Adviser, Member FINRA/SIPC.
MidAmerica Financial Resources and Malan Financial Group are separate and unrelated companies to LPL.
This material was prepared by MarketingPro, Inc. for use by MidAmerica Financial Resources.
