Financial Briefs

More Articles  Printer Friendly Version

 

Watch The Fed Closely In The Months Ahead

In June, the economic expansion entered its eleventh year, officially setting a new record as the longest growth cycle in modern U.S. history. The previous record-setter was the 10-year expansion that bracketed the 1990s.

From The Great Recession of 2008, the worst spate of negative gross domestic product (GDP) since The Great Depression, the current growth cycle began in April 2009, and GDP grew only modestly until 2015, when real wage gains accelerated, and that has propelled stronger than expected growth for the U.S. for over four years. Though U.S. growth recently leveled off, it's been a spectacular expansion by modern standards.

The Federal Reserve was nimble in changing interest rate policy as trade war and as real war fears heightened, and the expansion is poised to continue into 2020, but the Fed's model of the economy has not always been accurate in the past. Far from it! The Fed has caused every recession since 1954 by making a monetary policy mistake and misreading the economy — tightening credit too much and choking growth.

Since this expansion began, the Fed's forecast for inflation has been incorrect. Fritz Meyer, an independent economist whose research we purchase, says the Fed's fear of inflation is overblown. If he's right, the Fed may come around and allow the economy to grow through most of 2020 without raising interest rates. Watch for the Fed to show less fear of inflation in the months ahead.


Email this article to a friend


Index
Is The Inverted Yield Curve The Financial Fakeout Of 2019?
Retirement Income Alert: Do You Own A $1 Million Plus IRA In A High Income-Tax State?
How Can We Help You Die In Peace?
A Primer On Setting Up A Trust Fund
Three Strategic Mid-Year Tax Tips
How To Avoid State Income Tax On Distributions From IRAs
Say Goodbye To Stretch IRAs And Get A New Plan
Tax Alert: Plan Now For The Demise Of Stretch IRAs
Prepare For A Sweeping New Law On Retirement Account Taxes
U.S. - China Trade War Coverage Distorts Economic Reality
How To Give Gifts And Not Trip On The Gift Tax
Give To Charity From An IRA To Lower Your Tax Bill
Staying Realistic About Investing Amid Volatile Market Swings
How To Swap Real Estate And Defer Taxes, Maybe Forever
As A Final Act of Love, Plan Thoughtfully

This article was written by a professional financial journalist for Blattel & Associates and is not intended as legal or investment advice.

©2019 Advisor Products Inc. All Rights Reserved.

The articles and opinions on this site are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your advisor with regard to your individual situation.
All summaries/prices/quotes/statistics presented here have been obtained from sources we believe to be reliable, but we cannot guarantee its accuracy or completeness. Past performance is no guarantee of future results.
When you access certain links on the Blattel & Associates website you may leave this website. We do not endorse the content of such websites nor the products, services or other items offered through such websites. Any links to other sites are not intended as referrals or endorsements, but are merely provided to the users of the Blattel & Associates website for convenience and informational purposes.
Robert Blattel is a CERTIFIED FINANCIAL PLANNERTM practitioner. The partners of Blattel & Associates are not registered in all states. Please contact us to verify availability in your state. This is not an offer to buy or sell any security.
CFP® and CERTIFIED FINANCIAL PLANNERTM are certification marks owned by the Certified Financial Planner Board of Standards, Inc. These marks are awarded to individuals who successfully complete the CFP Board’s initial and ongoing certification requirements.
Securities and Investment Advisory Services offered through Cutter & Company Brokerage, Inc., 15415 Clayton Road, Ballwin, Missouri 63011 * (636) 537-8770. Member FINRA/SIPC.
Privacy Policy can be read at http://www.cutterco.com/privacypolicy.htm.