September 20, 2019
As expected, on Wednesday the Federal Reserve cut the Federal Funds Rate by 0.25% to a range of 1.75-2.00%. Fed Chairman Powell noted that trade tensions, weakening economies in Europe and China, and Brexit were risks (particularly for manufacturers), but the Fed also noted household spending remains strong. This week the 10-year Treasury yield, which is correlated to mortgage rates, declined to about 1.75%, which is still historically low. The stock market was down slightly, and we are still about a month from Q3 earnings season. Next week we will get a final read on Q2 GDP (Gross Domestic Product) that is expected to show 2.0% economic growth. For more information on the markets or your portfolio, we encourage you to contact your Buckingham advisor.
Ryan P. Johnson, CFA, CFP®
Director of Equity Research
Commentary Disclosures
