Fed Rate Cuts: What Is the Bond Market Signaling to Investors?

Fed Rate Cuts: What Is the Bond Market Signaling to Investors?

Fed Chair Jerome Powell's recent speech at the Fed's annual Jackson Hole conference, which has been covered extensively in the media, reinforced that an interest rate cut in September is likely. Powell emphasized that while there is uncertainty around tariffs and inflation, these concerns need to be balanced against supporting the job market. Markets have hovered near all-time highs recently, suggesting that investors agree with the trajectory of Fed policy and have confidence in the economy. What does a potential rate cut mean for long-term investors given the overall outlook?

How Investors Can Keep Up with Inflation

How Investors Can Keep Up with Inflation

When it comes to natural disasters, it's important to be prepared for earthquakes and erosion alike. Even though one is immediate and dramatic while the other is slow and gradual, both require careful planning and protective measures. Economic forces are no different - the most challenging situations that households and businesses face aren't always sudden and obvious, but can play out over many years. In the case of inflation, the risk of both sharp price increases and the gradual erosion of purchasing power are affecting financial markets today.

How Reliable is Government Data? Creating a Balanced Economic Picture

How Reliable is Government Data? Creating a Balanced Economic Picture

For investors trying to understand the economy, recent reports have provided mixed signals, even leading President Trump to fire the Bureau of Labor Statistics commissioner. The latest jobs numbers showed weakness and negative revisions, but there are also signs that GDP growth rebounded in the second quarter. Corporate earnings continue to beat expectations, driving markets to new all-time highs, while tariffs and inflation remain concerns.