Our Thoughts

FJY News to Know #44

The Federal Reserve Adopts a ‘Wait-And-See’ Strategy After Recent Rate Cut

The Fed cut interest rates to the 1.5%-to-1.75% range last week, amid some considerable board room division. Fed Chair Jerome Powell alluded to Alan Greenspan’s former tenure, in which he helped cut rates in 1995 and 1998. Theoretically, the next cut won’t happen until probably well into 2020. Ryan Nauman, a market strategist for Informa Financial, says that this will keep the Fed’s options open. To read other opinions about the move, click here .

Headless Job Rate Reveals a Surge in U.S. Labor Force

Although the unemployment rate did tick up to 3.6% in October, the headless jobless rate increased. This special rate is culled from a separate survey of households, which helped to lift the labor force participation rate up to 63.3%, which was 62.9% a year ago. The Fed is providing some significant support, because of the rate cut last Wednesday. Of the 325,000 people who went looking for jobs last month, 241,000 found them. Evercore claims that this added participation in the labor force will be a ‘game-changer’. For more perspective on this part of the economy, read here.

Can You Control the Data Shared with Your Financial Apps?

Many financial apps today have access to sensitive financial information, going as far as loan/mortgage data. However, many consumer advocates feel they have too much in many cases. The latter has led to the creation of the Financial Data Exchange, a nonprofit organization founded in 2018. Their members include banks, credit unions, financial app developers, and consumer advocacy groups. Many banks have online features that allow an account holder to authorize which information the apps can pull from their profile. Otherwise, many apps just rely on ‘screen scraping’ to ascertain data. To read about the future of this phenomenon, click here.

Indices Make New Highs Amidst U.S.-China Trade Talks and a Historically Kind Month

The S&P 500 and Nasdaq reached record highs last week and then beat them again on Monday — due to a variety of factors. China last Friday came to a consensus regarding the recent trade war. Also, earnings surpassed expectations — and November is following suit as a traditional and historical winning month. And this past Monday the Dow Jones also cracked its first time high (since mid-July). Most experts agree that the impeachment hearings focused on President Trump are not hurting stock prices. The general lending rate cut by the Fed has also helped yield positive growth. However, investors are still wary of other forces — notably Brexit and the trade war. Read more on how economists are sounding-off about the situation.