Fed Funds Raised Rate a Quarter Percent

Financial News and Portfolio Management Discussion through June 17th

US stocks rose slightly over the week as the outcome of the Fed meeting was in line with expectations. The S&P 500 edged up 0.1% and the Dow rose 0.5% for the week. Internationally, Japan ticked down 0.3% and Europe eased 0.5% for the week. The yield on the 10 Year Treasury edged up to 2.16% near its lowest level of the year. Oil prices fell to $44.73 a barrel its lowest level of 2017 on news of still high levels of inventory. For the year oil is down 17%. The price decline show the limitations of OPEC production cuts.

At the Fed’s June meeting, as expected, it raised the Fed Funds rate a quarter percent to a range between 1% and 1.25%. They still expect to raise interest rates one more time this year. It also spelled out how it would begin to unwind its $4.5 trillion bond portfolio later this year. It will start by letting $6 billion in Treasury securities and $4 billion in mortgage bonds mature without being reinvested and let that increase until a maximum of $30 billion in Treasuries and $20 billion in mortgages a month mature.

Amazon agreed to buy Whole Foods for $13.7 billion upending the grocery business.

Reposted from the Raffa Wealth Management Blog.

All the news you need to stay informed about what’s currently driving the market – courtesy of Raffa Wealth Management, LLC.


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