/perspectives/media/fractured-fomc-lowers-interest-rate-as-expected

“Fractured” FOMC Lowers Interest Rate as Expected

Scott Minerd, Chairman of Investments and Global CIO, visited Bloomberg TV to discuss the Fed’s latest rate cut.

September 18, 2019

 

 

Key Takeaways:

  • As expected the Fed cut rates by 25 bps, but with dissents coming from both sides of the decision.
  • Disagreement on policy direction creates uncertainty over direction from here.
  • With emergency repo operations the Fed fulfills role of “lender of last resort,” but risks losing control of its balance sheet.
  • The Fed has shifted away from data dependency to an expectations-based assessment of the economy.
  • With the zero bound near, a recession would lead to financial repression.


Read Forecasting the Next Recession: Will Rate Cuts Be Enough?

 


FEATURED PERSPECTIVES

July 30, 2021

Things Couldn’t Be Better

The COVID Delta Variant’s Looming Threat to Risk Assets.

July 26, 2021

A Better Way to Pay for Infrastructure Investments

A revival of the Obama-era Build America Bonds would raise funds with less taxes.

July 14, 2021

Still No Reason to Panic About Inflation

Taking a look at the upside surprise in June’s CPI.


VIDEO

First Quarter 2021 Fixed-Income Outlook
 

First Quarter 2021 Fixed-Income Outlook

Portfolio Manager Adam Bloch and Matt Bush, a Director in the Macroeconomic and Investment Research Group, share their outlook for the first quarter 2021.

Core Fixed-Income Conundrum 

Solving the Core Conundrum

Anne Walsh, Chief Investment Officer for Fixed Income, shares insights on the fixed-income market and explains the Guggenheim approach to solving the Core Conundrum.







Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objective, risks charges, expenses and the other information, which should be considered carefully before investing. To obtain a prospectus and summary prospectus (if available) click here or call 800.820.0888.

Investing involves risk, including the possible loss of principal.

Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, Guggenheim Partners Fund Management (Europe) Limited, Guggenheim Partners Japan Limited, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management. Securities offered through Guggenheim Funds Distributors, LLC.

© Guggenheim Investments. All rights reserved.

Research our firm with FINRA Broker Check.

• Not FDIC Insured • No Bank Guarantee • May Lose Value

This website is directed to and intended for use by citizens or residents of the United States of America only. The material provided on this website is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation. Investing involves risk, including the possible loss of principal.