Investment Commentary – December 17th, 2015
Market Indices as of Market Close December 17th, 2015
Dow 17,749 (-0.42% YTD)
S&P 2,073 (0.69% YTD)
NASDAQ 5,071 (7.08% YTD)
Global Dow 2,356 (52 week low 2,203/high 2,644 )
10-year Treasury 2.25 (52 week low 1.64 /high 2.50)
Gold 1,063 (52 week low $1,045/high $1,306)
Oil $35.27 (52 week low $34.53/high $65.56)
The Fed Awakens
The long-awaited interest rate hike by the U.S. Federal Reserve is now a reality. Perhaps more important to investors, policymakers indicated that they may not be in a rush to tighten further.
As the NASA hands at Mission Control might say, “We have liftoff.” The U.S. Federal Reserve’s (Fed) policy-setting arm, the Federal Open Market Committee (FOMC), delivered its long-promised 25 basis-point increase in the fed funds rate at the conclusion of its meeting on December 15–16. The Fed’s last rate hike was in June 2006.
In a communiqué released at the conclusion of the meeting, the FOMC said that economic activity was expanding “at a moderate pace.” Policymakers also noted that “there has been considerable improvement in labor market conditions this year, and