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