Tom Wilson, Managing Director, Wealth Advisory &
Senior Investment Manager
The consensus opinion now is that the Federal Reserve will not raise interest rates when they conclude their two-day meeting tomorrow, September 17. Thus, such a decision will not be a surprise to the markets, but investors will be looking closely at the comments coming out of the meeting.
We expect the Fed to note the positive aspects of U.S. employment, which is one of their two mandates. Their second mandate is an inflation target that supports price stability and economic growth. On this point, the Fed will likely note that the economy is running below their 2% target.
Investors will also be looking to see how the Fed comments on China’s economy and its impact on global growth, particularly on Pacific Rim countries and world equity markets. More specifically, the market would be looking for insight on how much the Fed will weight this information when setting monetary policy here in the U.S.
The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Holdings are subject to change.