Home Blog All Eyes On The Federal Reserve (Fed) Meeting Today

All Eyes On The Federal Reserve (Fed) Meeting Today

Inflation peaking?

After record recent inflation data, worries over continued higher inflation later this year are soaring. Here are some things to think about though:

  • We see inflation potentially upwards of 3% this year but remain in the camp that it won’t be much more than that and it will eventually come back to trend.
  • The media might be worried, but the market isn’t. For example, the 10-year Treasury yield peaked in late March. If true inflation worries were here, we doubt that would be the case.
  • Various commodities also peaked recently. Things like copper, corn, soybeans, and lumber. Again, potentially showing calming in the overall inflationary worries.
  • Lastly, the 5- and 10-year Breakeven rates (a measure of expected inflation) both peaked last month as well, yet another sign of calming inflationary worries.
  • We will take a look at inflation and did it just peak more today on the LPL Research blog, available at 12:00 p.m. ET.

Daily Insights

U.S. markets point toward a mixed open amid today’s Federal Reserve decision on interest rates and policy later this afternoon

  • The Dow Jones Industrial Average is down a fraction while the growth-laden Nasdaq Composite opened marginally higher.
  • European stocks are up a fraction as tensions remain high with President Biden and President Putin set to meet.
  • Asian markets are mostly lower as China’s factory output and retail sales missed expectations last month.

All eyes on the Federal Reserve (Fed) meeting today

  • The Fed wraps up its two-day Federal Open Market Committee (FOMC) meeting today with a new set of economic and interest rate projections.
  • Markets are expecting no changes in its interest rate or bond buying programs, but the Fed could signal an earlier “lift-off” of its short-term interest rate policy.
  • While we’ll be watching for any changes in the data releases, we’ll also be watching Chairman Powell’s press conference at 2:30 p.m. ET today, which will likely provide more details on the future path of monetary policy.
  • We will summarize the details of this (expected) moderately interesting Fed meeting and the related press conference on Thursday, June 17, on the LPL Research Blog.

LPL Research in the Media

LPL Financial Chief Market Strategist Ryan Detrick was on Yahoo! Finance recently to discuss current trends. You can watch the full interview here.

Ryan was also quoted in USA Today talking about what could happen the second half of this year, while LPL Financial Equity Strategist Jeff Buchbinder was quoted by the Washington Post on inflation.

Sustainable Investing Becoming Mainstream in Fixed Income

Sustainable investing is becoming more mainstream in fixed income markets and companies that recognize that changing dynamic may be able to avoid financially material impacts. Learn more in this week’s Weekly Market Commentary.

New Highs in Inflation and Stocks

On this week’s LPL Market Signals Podcast, LPL Research looks at the better than expected market highs, inflation concerns, and sustainable investing in the fixed-income market.



This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index and market data are from FactSet and MarketWatch.

This Research material was prepared by LPL Financial, LLC.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).

Insurance products are offered through LPL or its licensed affiliates.  To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.

  • Not Insured by FDIC/NCUA or Any Other Government Agency
  • Not Bank/Credit Union Guaranteed
  • Not Bank/Credit Union Deposits or Obligations
  • May Lose Value

For Public Use – Tracking # 1-05156261

Related Post

Leave a Reply