x
Your preference has been saved. Remove your saved preference.
You must supply both a username and a password to login.
You must supply a username, password and token to login.
Sign on
Passport secured login icon  
 
Wealth Management
Asset Management
Asset Servicing
Insights & Research
About Northern Trust
Search go
Click to close drop down menu.
 
Click to close drop down menu.
Financial Intermediary
Learn about asset management solutions designed for Retirement Plan Advisors, TAMPs/Outsourcing Providers, Subadvisory Program Sponsors, RIAs/Financial Advisors and Trust Institutions.
Institutional
Learn about asset management solutions including: global index management, active equity and fixed income, target retirement date funds, and manager of manager programs.
Individual
Get answers to your investment challenges with asset management capabilities including alternatives, exchange traded funds, fixed income, mutual funds and tax-advantaged equity.
Click to close drop down menu.
 

Economic Update

 
.
 
 
 
 
 
 
 
 
.

Fed is confident weather was the temporary culprit

April 30, 2014

View PDF Version

The Federal Open Market Committee (FOMC) concluded its meeting on Wednesday with an additional $10 billion reduction of asset purchases.  The Fed stands to buy $45 billion of Treasuries and mortgage-backed securities until the next meeting in June.  There were no dissents. 

Key points from today’s statement:

  1. FOMC members were not swayed by a stalled economy in the first quarter.  Weather was cited as a partial cause for the 0.1% increase in real gross domestic product in the first three months of the year. 
  2. The Fed is confident about a pickup in economic activity.  In light of the largely positive nature of recent economic reports, the statement noted that growth in economic activity "has picked up recently."
  3. The Fed abstained from using strong adjectives to modify its depiction of housing market conditions despite the disappointing string of housing market reports in recent weeks.
  4. The Fed is optimistic about consumer spending as it noted that “it appears to be rising more quickly.”  Consumer spending has recorded two consecutive quarters of at least 3.0% growth, a first for the current expansion.
  5. Business spending was seen to have "edged down," which is a nod to the decline in equipment spending during the first quarter.
  6. Looking ahead, we expect the Fed will complete its asset purchase program in the final months of the year.  Labor market developments will drive the course of monetary policy during the months thereafter.  Currently, the Fed views “labor market conditions as mixed” but improving on balance. 
.
The opinions expressed herein are those of the author and do not necessarily represent the views of The Northern Trust Company. The Northern Trust Company does not warrant the accuracy or completeness of information contained herein, such information is subject to change and is not intended to influence your investment decisions.
.
 
 
 
 
 
 
 
.