WEEKLY CAPITAL MARKET HIGHLIGHTS:
- The Federal Open Market Committee (FOMC) elected to raise the federal funds rate at its March meeting from a range of 50-75 basis points up to 75-100 basis points. This was widely anticipated by the market following aggressive forward guidance in recent weeks. The statement accompanying the hike was less hawkish than expected, and both equity and bond markets rallied on the announcement. The Federal Reserve (Fed) is telegraphing two additional hikes this year, leaving projections for the medium-term tightening cycle unchanged.
- The Producer Price Index (PPI) measures came in at 0.3%, higher than expected. Year-over-year, producer prices are up 2.2%, the highest level in nearly five years, pointing to an inflation reading that is coming into line with the Fed’s target.
- Housing starts for February were favorable, particularly for single family homes, which were up 6.5% during the month. Multi-family starts fell by 3.7%, but remain up 13.0% on the year
Download the complete weekly report: Endowment Wealth Management Weekly Review March 17, 2017