MA’s Ken Matheny Quoted in St. Louis Post-Dispatch

MA’s Ken Matheny was quoted in the article, “Fed rate increases move from a crawl to a walk” by By David Nicklaus of the St. Louis Post-Dispatch. (Excerpts shown below) Not long ago, the mere mention of higher interest rates sent financial markets into a tizzy. Now, markets are shrugging off, and maybe celebrating, the fact that the Federal Reserve just quickened its pace of rate increases from a crawl to a walk. Stocks remain near record highs, bonds are stable and the dollar is little changed. In December, markets and many economists didn’t believe a Fed forecast that implied three rate increases this year. It had pushed through only one increase in 2015 and one in 2016, after all. Three months later, almost everybody believes that Wednesday’s quarter-point move will be duplicated twice more before Christmas. That would put the overnight interest rate, called the federal funds rate, at between … Continue Reading

MA’s Ken Matheny Quoted in USA Today

MA’s Ken Matheny was quoted in the article, The Fed raises interest rates again, saying ‘economy is doing well’ by Paul Davidson with USA Today. (excerpts shown below). “The Fed on Wednesday raised its benchmark short-term rate by a quarter percentage point to a range of 0.75% to 1% and stuck to its forecast of two more such increases this year and three in 2018. Some economists had expected Fed policymakers to modestly step up the pace. With the Fed more confident that inflation is moving higher, “It’s now going to switch to more regular, more predictable path of rate hikes,” says Ken Matheny, senior economist at Macroeconomic Advisers. (click here for article)