Weekly Market Update
FED ANNOUNCES PLANS TO END BALANCE SHEET REDUCTION
Thursday, February 21, 2019
Minutes from the latest Federal Reserve meeting reveal disagreements among Fed officials on the need for additional rate hikes this year. While rates were left unchanged, there were no indications that preclude future hikes. The Fed also announced plans to stop shrinking its $4 trillion asset portfolio, ending the balance sheet runoff that began in 2017. Officials stated that "such an announcement would provide more certainty about the process for completing the normalization of the size of the Federal Reserve's balance sheet". Markets reacted positively to the Fed's actions but remain wary of the uncertain economic outlook.
In Other News
- Auburn University is moving forward with plans to build the $94.5 million Tony and Libba Rane Culinary Science Center, expected to open in 2021. The building will include a boutique teaching hotel and restaurant and will house Alabama's only professionally accredited hospitality program.
- NYU announced the opening of the new NYU Long Island Medical School. The school will be tuition-free and focused on training primary care physicians, working in partnership with the NYU Winthrop Hospital.
- Dale Whittaker, the president of the University of Central Florida, has resigned his position after only eight months. Whittaker stepped down after facing intense scrutiny from lawmakers for misuse of state operating funds.
- Following in the footsteps of NYU's medical school, the Kaiser Permanente School of Medicine announced that its first five graduating classes will attend the school for free. Located in Pasadena, CA, the school will begin accepting applications this June.