Changes may be on the way.
As many of you know, the Federal Reserve's Open Market Committee has eight scheduled meetings each year when the seven board members review the nation's economic activity and set the federal funds rate's target rate.
In this extraordinary year, the Fed may announce in September the results of its year-long policy review. The Fed's focus has been where Americans might expect: examining inflation and employment as the nation recovers from the volatility that followed COVID-19.1,2
In recent scheduled meetings, the Fed has been working to determine its ultimate policy plan, with an emphasis placed on assessing the inflation rate. Fed's inflation target is usually in the neighborhood of 2%, a higher percentage may be desirable, with the ultimate goal being economic growth.1
It's not unusual to have questions or concerns about the Federal Reserve and how its policies may influence economic activity. While they have a significant influence on all other aspects of the economy, a well-considered financial strategy will have many of these factors taken into account. A conversation with your financial professional should answer many of your questions.
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
Securities and investment advisory services offered through Hornor, Townsend & Kent, LLC (HTK), Registered Investment Adviser, Member FINRA/SIPC, 4 North Park Drive, Suite 400, Hunt Valley, MD 21030. 410-821-2920. HTK is a wholly-owned subsidiary of The Penn Mutual Life Insurance Company. AspireWealth Planners is unaffiliated with HTK. A0RB-0819-Aug21t
1. CNBC.com, August 4, 2020
2. NYTimes.com, August 12, 2020