Latest / Markets with Megan: A Quick Financial Markets Update / 036: Unpacking the FOMC Minutes with Megan Horneman 08-16-23

Transcript

036: Unpacking the FOMC Minutes with Megan Horneman 08-16-23 · Markets with Megan: A Quick Financial Markets Update

• 0:02
  Megan Horneman: Hello, welcome to Markets with Megan.
• 0:04
  Megan Horneman: This is Megan Horneman, the Chief Investment Officer for Verdence Capital Advisors, and we're coming to you today to discuss the FOMC meeting minutes that came out from their meeting in July.
• 0:14
  Megan Horneman: Remember, after the meeting, we tend to get a brief statement or press conference, but the meeting minutes is more detailed and gives us a lot more information about the discussion as well as the view from some of the other bankers that may not be in the voting authority on the FOMC.
• 0:30
  Megan Horneman: What we saw is the committee is really split on what they see going forward from an inflation and an economic standpoint.
• 0:38
  Megan Horneman: The majority of people did agree with the rate hike, but there were some that wanted to pause, and then there are some Fed officials that are still very concerned about inflation.
• 0:47
  Megan Horneman: This has spooked the market.
• 0:49
  Megan Horneman: Obviously, we've seen the equity market today.
• 0:51
  Megan Horneman: It's down deeply.
• 0:53
  Megan Horneman: Bond yields are high.
• 0:54
  Megan Horneman: The 10-year bond Treasury yield is getting ready to break through this previous peak, which was in 2022, so this is bad news for technology stocks, for growth stocks, for high PE stocks.
• 1:06
  Megan Horneman: It's something that we've been warning that the investors got a little too complacent on the Fed's path.
• 1:12
  Megan Horneman: We still think the Fed and Fed rate hikes are still on the table in the future.
• 1:16
  Megan Horneman: There is way too much work that they have done, that they don't want to unravel and there's still too many things.
• 1:23
  Megan Horneman: The three that we focus on wage inflation, services inflation and housing inflation All three of those are still too sticky at this point.
• 1:31
  Megan Horneman: So the Fed's not completely done.
• 1:33
  Megan Horneman: We think that this is going to continue to create volatility in the markets and we'll come back if any other information that we have on the Fed.
• 1:40
  Megan Horneman: That's all we have for today.
• 1:42
  Megan Horneman: If you have any questions or comments, please feel free to reach out to podcast at Verdence dot com.
• 1:46
  Megan Horneman: Thank you,