Economy Rebounding as Fed Trims Bond Purchases

In its latest meeting, the Federal Reserve noted improvements in both U.S. economic strength and broad labor market while inflation remains in check. The current environment allows the Fed to reduce its monthly pace of asset purchases while maintaining low rates–good signs for the corporate titans of Wall Street and the average Joes of Main Street.

The Fed’s optimism is rooted in upward trends in manufacturing and residential construction. They also have a positive outlook on employment as payrolls have increased four months in a row. GDP growth is now expected to exceed three percent excluding the first quarter’s contraction

Labor market gains have bolstered the confidence of policy makers this year. Although Fed Chairwoman Yellen continues to debate how long to keep interest rates near zero, her public message to markets is to expect no change through late 2015 or even 2016. The Fed remains convinced that inflation is well below its target of two percent.

The economy has improved in tandem with strong corporate earnings growth, pushing U.S. stocks to record highs. The VIX, a widely followed fear gauge, recently fell to its lowest level since early 2007. Market participants are betting that rising 401k balances and home prices should drive U.S. consumer confidence and boost spending at malls, dealerships and online.


Share this article:
Share on Facebook0Share on Google+0Tweet about this on Twitter0Share on LinkedIn0Email this to someone

Get the Capital you need Today!

Click Here To Start Your Cardiff Loan Application

This entry was posted in US Domestic News and tagged , , , , , , , , , , , , , , , , , on by .

About William Stern

William, Managing Director in charge of business development and human capital, serves on the firm's executive steering committee. William's expertise in sales and organizational management has helped the firm exceed ambitious growth targets year after year. William is devoted to building infrastructure, eradicating inefficiencies, and developing new products and services that keep Cardiff a dynamic force within its markets. One of William's many initiatives has been to increase Cardiff's footprint across the US, penetrating new markets while building stronger relationships with current partners. Before joining Cardiff, William worked for TD Waterhouse as a Learning and Development Counselor for their burgeoning discount brokerage division. Following TDW, William held a key business development post in the Commercial Equipment Finance Division of a California-based leasing company helping to expand market share and annual sales through direct marketing to middle market companies seeking equipment financing and leasing. To learn more about capital markets, both foreign and domestic, William moved to the San Francisco Bay Area to pursue a career with Fisher Investments (FI) as an Investment Counselor in their Private Client Group. William received two degrees of Bachelor of Arts in Castillian Spanish Literature and Political Science from Revelle College at the University of California, San Diego.

2 thoughts on “Economy Rebounding as Fed Trims Bond Purchases

  1. Donald

    >Chairwoman Yellen continues to debate how long to keep interest rates near zero

    Hopefully for as long as possible! Great read!

Comments are closed.