Boyd Nash-Stacey

As we expected, the FOMC increased the Fed funds rate to 1.5%-1.75%, confirming that newly appointed Chairman is committed to maintaining continuity with his predecessor. The language in the statement underpinned the committee’s shift from a defensive to potentially offensive mindset, with strong labor market signals, increased business investment and firmer actual inflation readings.

After barreling into the state of Texas, as one of the largest and most damaging Hurricanes in U.S history, Hurricane Harvey continues to devastate the Corpus Christi-Houston-Galveston area with catastrophic destruction, human losses, and unprecedented flooding.

As the region begins to pick up the pieces in the weeks, months and years to come, there is a growing concern about the impact that Hurricane Harvey will have on the regional and national economy.

The Federal Open Market Committee will forgo rate increases when it meets next week, leaving the target federal funds rate at 1.25%.

After a yearlong pause, the Federal Open Market Committee voted unanimously to raise interest rates 25bp to 0.5-0.75%. Based on the Summary of Economic Projections (SEP) and Federal Reserve Chairwoman Janet Yellen’s press conference, it seems the recent market exuberance has not diverted the Fed from its current strategy for a gradual increases. The press conference reinforced the idea that the committee may be somewhat tolerant in the short-run, but that it would like to see fiscal policy directed at boosting productivity rather than stimulating the economy.

After the Senate’s passage of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA), Puerto Rico’s debt saga will enter a new chapter: closure. The bill will be signed by President Obama after receiving bipartisan support in both the House and Senate. Collective action from House leaders Paul Ryan and Nancy Pelosi and the White House at the outset has allowed for a timely and smooth passage, avoiding complications from missed payments due on July 1.