16th March 2017, GTC Advisors – As Expected FED Raises Rates by 0.25%
GTC Advisors is a 100% Independent, privately owned Boutique Investment Advisory Firm offering services to retail, corporate and high net worth individuals.
GENEVA, Switzerland - March 16, 2017 - PRLog -- As the majority of the markets predicted, Janet Yellen the head of the Federal Reserve announced the second rate hike in as many months' yesterday.
Increasing the key rate target to 0.75% - 1% the leader of the Fed made the third rise in a decade after a healthy job report for February, solid gains in payrolls, rising inflation and unemployment which kept at the 4.7% range.
These factors were instrumental in the rate increase as the country's economy heads to 2% inflation, its benchmark target.
This being the second raise in three months, analysts are now looking to see whether there could be as many as 4 increases this year against the 3 many believed was pretty much accounted for in the markets valuation. One thing is for sure, no one expects another rise until after June as the Fed will want to wait and see whether any of the tax relief programs President Trump has put forward get the green light.
There was more positivity from the notes and the statement released late yesterday.
Revised economic growth figures for 2017 and 2018 at 2.1% came in higher than previous estimates, showing a confidence in the current economy, especially with unemployment data keeping within the realms of sub 5%, a point that some feel is close to full employment. Economic growth was however revised down for 2019 at just 1.9%.
The news helped settle the USD against both the Euro and Pound, the dollar dropped 0.11% and 0.10% respectively. The slight drop in the USD also saw inflows to both gold and silver, both commodities gained over 2% after the news.
The major markets in the US, having already priced in the rate increase, still managed to finish the day in the green if only marginally:
S&P 500 - +0.84% Closed @ 2,385.26
Dow Jones - +0.54% Closed @ 20,950.10
NASDAQ - +0.74% Closed @ 5,900.05
At GTC we still see incredible value in the US equity markets and especially within the IPO sector. We have already had one of the most hyped IPO's of the year so far, Snap, Inc. (SNAP) saw gains of over 40% in its opening day, which many believed would be an almighty flop. There are several high profile listings expected for the remainder of 2017 and GTC Advisors will keep you posted on what's HOT and what's NOT.
GTC Advisors prides itself in offering a truly global financial service. Our ability to provide a wide range of independent financial advice incorporating multiple sectors, markets and demographics is key to retaining clients and nurturing new relationships. It is our mission to support our clients in every aspect of their financial strategy that sets us apart from the competition.
Contact an advisor today for a free consultation at www.gtc-advisors.com
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