Fed Focus

The Fed kept interest rates unchanged for the month as was widely expected. However, the anticipation by investors of a rate hike coming next month is nearly unanimous. The Fed has been telling us for some time that the robust corporate earnings and job growth are warrant interest rate normalization - and they have a point. The unemployment rate is 4.2%, and this earnings season has seen three out of four companies surpassing earnings expectations and beating sales estimates, driving market prices to all time highs. As the Fed acts, we will be focusing on one of the oldest investing mantras on Wall Street - "don't fight the Fed". Higher interest rates might spook some investors and send them to the sidelines while the new rising interest rate era gets under way. Nevertheless, we don't scare easily and will remain focused on growing and maintaining wealth.