{"id":3514,"date":"2019-03-25T08:48:36","date_gmt":"2019-03-25T12:48:36","guid":{"rendered":"https:\/\/109.199.100.74\/~scarletoakfs88\/?p=3514"},"modified":"2023-07-20T18:00:39","modified_gmt":"2023-07-20T22:00:39","slug":"fed-holds-interest-rates-steady","status":"publish","type":"post","link":"https:\/\/scarletoakfs.com\/fed-holds-interest-rates-steady\/","title":{"rendered":"FED Holds Interest Rates Steady"},"content":{"rendered":"

Weekly Economic Update<\/strong><\/p>\n

In this week\u2019s recap: the \u201cyield curve\u201d inverts for the first time this decade, the Federal Reserve adjusts its stance on interest rates, and the price of oil climbs.<\/em><\/p>\n

 <\/p>\n

THE WEEK ON WALL STREET<\/strong><\/p>\n

Friday, the yield of the 3-month Treasury bill exceeded the yield of the 10-year Treasury note for the first time in 12 years. For some analysts, this \u201cinverted yield curve\u201d may imply a short-term lessening of confidence. (Treasury yields move inversely to Treasury prices.)1<\/sup><\/p>\n

As a result, the S&P 500 ended the week 0.94% lower. The Nasdaq Composite fell 0.80%, and the Dow Industrials lost 1.19%.2,3,4<\/sup><\/p>\n

In contrast, the MSCI EAFE index following international stocks rose, gaining 0.52% for the week.5<\/sup><\/p>\n

 <\/p>\n

FED SEES NO HIKES IN 2019<\/strong><\/p>\n

On Wednesday, the Federal Reserve held interest rates steady, but lowered its estimate of 2019 economic growth to 2.1%.<\/p>\n

Last December, the central bank forecast two rate hikes in 2019. It now expects to leave rates unchanged this year, with one quarter-point hike projected for 2020.<\/p>\n

This pivot may acknowledge a slight change in economic conditions. The Fed\u2019s latest policy statement noted that the \u201cgrowth of economic activity has slowed from its solid rate in the fourth quarter.\u201d6 <\/sup><\/p>\n

 <\/p>\n

OIL HOVERS NEAR $60<\/strong><\/p>\n

At Friday\u2019s closing bell, a barrel of West Texas Intermediate (NYMEX) crude oil was valued at $58.85 on the New York Mercantile Exchange (NYMEX). Its value briefly climbed to $60 earlier in the week.<\/p>\n

Month-over-month, the price of WTI crude has risen nearly 5%. Historically, higher oil prices can have a significant impact on retail gasoline prices.7<\/sup><\/p>\n

 <\/p>\n

WHAT\u2019S NEXT<\/strong><\/p>\n

A U.S. delegation is scheduled to accompany Secretary of the Treasury Steven Mnuchin to China this week for further trade negotiations. Finally, Brexit will not occur this Friday, as the European Union has extended the United Kingdom\u2019s deadline in response to Prime Minister Theresa May\u2019s request.8,9<\/sup><\/p>\n

 <\/p>\n

THE WEEK AHEAD: KEY ECONOMIC DATA<\/strong><\/p>\n