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Steve Coker, CFP
- Sep 9, 2019
- 3 min
What is the Federal Reserve?
With the Federal Reserve once again in the news, it is worth discussing this important organization and its role in the economy and investing. The Federal Reserve System (or more simply the “Fed”) is the central bank of the United States. The overall system is comprised of 12 regional Federal Reserve Banks that support the needs of local communities in their region. On a day to day basis the Fed is responsible for the integrity of the nation’s banking system: supervising m
Steve Coker, CFP
- Mar 25, 2019
- 2 min
Federal Reserve Holds Rates
As most economists expected, the Federal Reserve held interest rates steady last week. Despite the uneventful outcome on rates, markets had several volatile sessions as investors digested the Federal Reserve’s economic outlook. The bottom line is that economic risks are increasing, and short-term interest rates are likely to remain flat in the range of 2% to 3% for some time. Notably, the Fed reduced the growth outlook they held in December. Not only are global markets, pa
Steve Coker, CFP
- Jan 28, 2019
- 3 min
Rising risks, but good data
After a bear market (20%) decline in stocks in the 4th quarter of 2018, the stock market is off to a positive start in 2019. When you read the news, it seems incredible that stocks could be rising. Certainly, there seems to be plenty in the news to be worried about: the government shut-down, a trade war with China, slowing global growth, rising interest rates, falling oil prices, weak housing reports, and more. Yes, risks are rising in 2019 and we are likely in store for
Steve Coker, CFP
- Feb 26, 2018
- 3 min
What to Do with Good News
The good news continues to roll in for the global economy. As we discussed at last week’s investor conference, one of the most prominent features of the current global expansion is its breadth, as almost every part of the world is growing. However, the most recent forecasts for global growth had a new feature, ‘acceleration.’ For example, the most recent World Economic Outlook released by the International Monetary Fund (“IMF”), on January 22, now predicts 2018 and 2019 growt
Steve Coker, CFP
- Sep 13, 2016
- 3 min
Should We Fear the Fed?
After several months of relative calm and fairly steady increases, stock markets fell sharply Friday with the S&P 500 declining 2.45%. Most pundits blame Federal Reserve Bank of Boston President Eric Rosengren, known as one of the more accommodative Federal Reserve Governors, for spooking the market with comments that “a reasonable case can be made” for tightening monetary policy. His comments, made during a speech in Boston on September 9th, immediately increased expectati
Steve Coker, CFP
- Feb 15, 2016
- 3 min
What is Behind the Recent Market Volatility and What You Should do About it?
Paul Anthony Samuelson, an American economist and the first American to win the Nobel Prize in Economics, famously wrote in a 1966 Newsweek article: “Wall Street indexes predicted nine out of the last five recessions!” The quip has since been widely quoted in economics literature to remind us that the best economists, and even the markets themselves, do a poor job of predicting the future. As global stocks experience renewed volatility, there have once again been cries from
Steve Coker, CFP
- Dec 21, 2015
- 2 min
Investing Basics: How Does the Fed Funds Rate Impact Interest Rates
On Wednesday, December 16, the Federal Reserve announced the long awaited rise in the Fed’s official borrowing rate. But what does it mean when you hear in the news that the Fed has raised rates? There is a broad perception that the Federal Reserve sets interest rates for things like company loans, mortgages, car loans and even credit cards, but the Feds impact on interest rates in the broader economy is indirect. In fact, even though the Fed has an enormous effect on rate
