Investment

A report from First Trust Advisors, L.P.: Turning off the global economic light-switch, and then turning it partially back on, has sent shockwaves through economic data that, while anticipated, have been jaw-dropping in both directions. For example, US retail sales plunged a combined 21.8% in March and April, before rising 17.7% in May. Manufacturing production fell 20.0% in March and April, before gaining 3.8% in May. Non-farm payrolls shrank 22.1 million in March and April, followed by a gain of 2.5 million in May. The savings rate surged to 33% in April, the highest rate ever recorded with current metrics. […]

The one key takeaway from last week’s Fed meeting is that monetary policymakers are set to keep short-term interest rates near zero for as far as the eye can see. Not forever, but at least until 2023. Keep this in mind in the week ahead, as we get more reports confirming the economic recovery started back in May. The Federal Reserve conveyed that commitment in a few different ways. First, and most important, was the quote from Wednesday’s post-meeting press conference with Fed Chairman Jay Powell that the Fed is not even “thinking about thinking about raising rates.” In other […]