Are your reserve funds earning a respectable return?
The FOMC unanimously approved another 75bps overnight lending rate increase to a target range of 2.25% to 2.5%
If you’re locking up funds more than 3 months at a time... you’re betting against the Fed which is expected to raise the overnight lending rate to between 3% and 4% by EOY
The US GDP (Gross Domestic Product) contracted again in Q2
A look at this week’s rates… (as of Thursday, July 28)
Note the yield curve inversion! Shorter-term maturities are elevated vs. longer-term maturities.
“As it relates to September, I said another unusually large increase could be appropriate, but that’s not a decision we’re making now; it’s one that we will m ake based on the data we see" - Fed Chair Jerome Powell
Mr. Powell reiterated that it’s still a good bet that the central bank will push its target rate to between 3% and 3.5% by year-end. - Michael Derby, WSJ