After meeting for the first time in 2016, the Federal Reserve declined to raise interest rates last week but gave no indication that it intends to abandon rate hikes later this year. Predictably, talking heads exploded on all sides. Some believe that the Fed made a mistake by not raising rates and giving markets more confidence in the economy. Others believe that the Fed is being appropriately cautious given the market turmoil and concerns about economic growth. What’s clear is that the Fed is telling investors: “We’re aware of the uncertainty and we’re keeping an eye on many indicators.”4
Bottom line: In our view, market volatility will remain with us for the foreseeable future.
1 http://finance.yahoo.com/q/hp?a=00&b=25&c=2016&d=00&e=29&f=2016&g=d&s=%5EGSPC%2C+&ql=1 http://finance.yahoo.com/q/hp?a=00&b=25&c=2016&d=00&e=29&f=2016&g=d&s=%5EDJI%2C+&ql=1 http://finance.yahoo.com/q/hp?a=00&b=25&c=2016&d=00&e=29&f=2016&g=d&s=%5EIXIC%2C+&ql=1