Daily Global Insight - The Fed makes a "Mid-Cycle adjustment to Policy" & Hymers Team Long Weekend Plans

August 02, 2019 | Rhonda Hymers


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Good morning,

The August long weekend is well enjoyed by all, with camping, visiting friends, and spending quality time with our loved ones. Whether you are off on an adventure, visiting a cottage on the lake, or staying close to home we hope everyone has an opportunity to enjoy some sunshine.

Featured in this week’s blog are:

  • Daily Global Insight featuring:  The Fed makes a “Mid-Cycle adjustment to Policy”, U.S. consumers doing the heavy lifting and Regional highlights
  • Hymers Team Long Weekend Plans

Enjoy the warm weather ahead and have a wonderful long weekend!

Warm Regards,

Rhonda & Hymers Wealth Management Group


I'm pleased to share RBC Wealth Management's latest investment newsletter.

The Fed cuts rates—only to raise uncertainty

The Fed delivered the rate cut that the market has long awaited, but after yet another escalation on the trade war front, paired with Fed Chair Powell’s track record of hawkish rhetoric, it may not have been enough and raises risks the Fed could fall behind the economic curve. (pg 1 and below).

The Federal Reserve cut interest rates by a quarter-percentage point in a pre-emptive strike to cushion the economy from a global slowdown and escalating trade tensions. U.S. equities fell, yields rose and the dollar strengthened after the Fed decision was announced. The decision effectively took back the central bank’s December rate increase, which the Fed pushed through during a period in which it believed interest rates were still low enough to spur growth and inflation. Since then, inflation has declined. The abrupt end to the so-called normalization shows how monetary policy is likely to operate with fewer conventional tools than in the past. The central bank “will continue to monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion,” the Fed statement said. While officials expect the economy to expand steadily, “uncertainties about this outlook remain.” The rate cut marks just the fifth time in the past 25 years that the central bank switched from raising to lowering rates. In the four prior cases, the Fed never cut rates just once.

U.S. consumers doing the heavy lifting

The American shopper fueled Q2 growth.  And despite all of the political noise and trade uncertainty, consumers remain the most optimistic about growing incomes in two decades.  We think this optimism should translate into continued spending. (pg 3).

Regional Highlights 

Broad-based growth lifting Canada's economic mood; Pound tumbles close to a 5-year low; Hong Kong stocks slide as protests intensify. (pg 3).

Please take a few moments to review the Global Insight Weekly.


What we are up to this long weekend:

  • Rhonda and family are off to Calgary for a wedding and will enjoy some time with friends at Gleniffer Lake.
  • Cynthia and Devon have a busy long weekend planned.  They are celebrating a friend's 40th birthday and hosting a pool party.  They plan to relax by the poolside, soak up the sun and enjoy the company of friends and family.
  • Rossi will be running, paddle boarding and visiting their friends at their cabin on Okanagan Lake.
  • Pia plans on taking advantage of the warm weather by golfing, hiking trails and visiting doggy beaches along the way with her husband Colin and Bentley.
  • Marnie and her kids are planning to do a tour of outdoor water slides from the Okanagan to Cultus Lake.
  • Kuan and his family will be going to Lake Goodwin, which is about an hour north of Seattle.
  • Darren and Trudy are off to the Kootenays camping for 11 days in their new trailer.
  • Pam and Wes are enjoying spending time with family and friends at the Lake.

Summer means happy times and good sunshine.  It means going to the beach, enjoying the scenery, having fun with Family and Friends.

~ Brian Wilson ~