Press comment: Federal Reserve has a goldilocks situation as rates are held


If you are covering the news that the Federal Reserve has decided to hold interest rates, please find below commentary from Hinesh Patel, portfolio manager at Quilter Investors:

“While it has been no surprise to see the Federal Reserve hold interest rates steady as they await data to force their hand, watching them going forward into 2020 will be interesting. In our view the Fed should and is likely to ease further next year, but ultimately anything can change in what will be a turbulent election year in the US.

“Today, the Fed has a goldilocks situation – growth, inflation and monetary conditions are neither too hot, nor too cold. Uncertainty around Donald Trump announcing another round of tariff hikes further boxed the Fed into a holding pattern. They will remain in a wait and see mode, and ignore the outside noise telling them how to move rates.

“Rosier housing and labour market data provide the Fed with relief in the short-term but industrial and agricultural sectors remain under pressure and these will need to be monitored closely should the American economy wish to continue ploughing on during a backdrop of global uncertainty.”

 

About Quilter plc:

Quilter Investors is part of Quilter plc. It provides multi-asset investment solutions designed for advised clients in the UK and internationally and manages £20.3 billion on behalf of its investors (as at 30 September 2019).

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £118.7 billion in investments (as at 30 September 2019).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

The Quilter plc businesses are being re-branded as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Charles Derby Group (becoming Quilter Financial Advisers)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
  • Old Mutual International (becoming Quilter International in 2020)

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