Weekly Market Update

FEDERAL RESERVE LOOKS AHEAD TO ADDITIONAL GRADUAL INTEREST RATE HIKES

Thursday, July 12, 2018

At their meeting last month, Federal Reserve officials discussed the impact of further hikes in interest rates. The minutes released last Thursday, which covers the June 12-13 meeting, left the impression that the officials had confidence in the U.S. economy's strength and in its plans to continue raising rates, but also raised concerns that tariffs and trade restrictions could divert the economy from its upward trajectory. The minutes covered discussions at which the central bank boosted its key rate, for a second time this year, to a new range of 1.75%-2.00%. The Fed officials also noted heightened concerns from businesses about President Trump's trade policies, and that some executives have scaled back future spending plans in response.

In Other News

Rating Agency Update

  • Moody's assigned A1 to University of Akron's Series 2018A General Receipts Bonds and Series 2018B Taxable General Receipts Bonds. The outlook is stable.
  • Moody's affirmed Jackson College's Aa2 rating. The outlook is stable.
  • Moody's affirmed Truman State University's A1 rating. The outlook is revised from stable to negative.
  • Moody's assigned A1 and S&P assigned A+ to Brandeis University's Series 2018R Revenue bonds. The outlook is stable.
  • S&P assigned AA to Michigan State University's Series 2018 General Revenue Bonds. The outlook is stable.
  • S&P assigned BBB to the University of New Haven's Series K-3 Revenue Bonds. The outlook is stable.
  • S&P affirmed University of Southern California's AA rating. The outlook is stable.
  • S&P lowered Vassar College's rating from AA- to A+. The outlook is stable.