Provided By: Lindsey M. Piegza, Ph.D., Chief Economist
"Fed Removes 'Patient,' Opening Door for Future Rate Cut"
As expected, the Fed opted to keep rates unchanged at the latest June FOMC meeting. At the same time, the Committee softened the tone of the statement to signal an increased willingness to provide additional acoommodation, if needed. While still relatively positive on the domestic front, the Committee specifically noted growing uncertainty stemming from conditions abroad, particularly international trade relations, that could warrant a rate reduction sooner than later.
While hardly a concession to the market's plea for an immediate rate reduction, a more dovish-leaning sentiment in the statement coupled with a downward revision to the Committee's projection for rates offered welcome reprieve to policymakers fearing the Fed would continue to dig in its heels against an eventual - and needed - rate cut to support growth and inflation. Still, taken at face value, the Fed has simply vowed to "monitor" the data closely and "react" accordingly, offering little confidence, let alone specifics, that a rate reduction is coming potentially as soon as market participants would hope or expect.
Stifel Financial Corp. is a diversified financial services holding company that conducts its business through several wholly owned subsidiaries. Its primary broker-dealer subsidiary, Stifel, Nicolaus & Company, Incorporated, is a full-service brokerage and investment banking firm established in 1890. Stifel Financial Corp. was formed as a holding company in July 1983 and is publicly traded on the New York Stock Exchange under the symbol "SF."