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The Move Higher But Not Much

June 25, 2019

The S&P 500 resumed its trajectory towards all time highs last week after verbiage from the Federal Reserve’s Minutes meeting added fuel to buyers confidence.  The conversation is now turning towards ‘How big?’ And ‘When?’ will the US Federal Reserve cut interest rates later this year, with many differing opinions on this matter. 

A sort of power contest has emerged between President Trump and Fed Chair Jerome Powell this week as media outlets probed the President with questions about ‘if he would demote Chairman Powell?’ after showcasing his disapproval with policy implementation that occurred throughout 2018.  President Trump stated he was ‘watching Chairman Powell closely’ to reporters while Powell labored on, in an interview on Tuesday, about the independence of the Federal Reserve from the Executive Office.  Markets prefer set circumstances; so with passive aggressive remarks making headlines, the certainty the market is looking for may be kicked further down the road.  

Markets will turn their attention towards the G20 Summit set to begin later this weekend to see if there is a potential cease-fire on the horizon from the tariff war.