Market Update: April 2017

investment advisory services historical yield curve april 2017 investment advisory services market update indicative rates - april 2017

Fed Leading Interest Rates Higher

The Federal Reserve has increased interest rates three times since December 2015 by a total of 75 basis points including two hikes since December 2016. Current and projected employment and inflation data, as well as the Fed’s own projections, suggest that the Fed will continue to raise rates in the coming months and years. Rising rates represent an opportunity for short-term investors. Money market products such as commercial paper and some certificates of deposit price off of LIBOR. 3-Month LIBOR has increased about 80 basis points since the Fall of 2015 contributing to higher yields earned by investors in these products.

Source: Wall Street Journal,

investment advisory services us economic indicators april 2017

Fed’s Preferred Inflation Measure

The Fed’s preferred measure of inflation continues to increase and is approaching the Fed’s target level of 2%. This inflation measure is the Core Personal Consumption Expenditures (PCE) price index. Compared to CPI, the weights for PCE are based on a more comprehensive measure of expenditures according to the Federal Reserve. Rising inflation signals that excess capacity and high unemployment may finally be abating. Along with employment, inflation is a key data point analyzed by the Fed as policy makers determine how much and how quickly to raise interest rates.

Source: Wall Street Journal, Boomburg

investment advisory services federal funds target april 2017


Download Full PDF


DISCLAIMER -This document was prepared by Prudent Man Advisors, Inc. for clients of the firm and its affiliated PMA entities, as defined below. It is being provided for informational and/or educational purposes only without regard to any particular user’s investment objectives, financial situation or means. The content of this document is not to be construed as a recommendation, solicitation or offer to buy or sell any security, financial product or instrument, or to participate in any particular trading strategy in any jurisdiction in which such an offer or solicitation, or trading strategy would be illegal. Nor does it constitute any legal, tax, accounting or investment advice of services regarding the suitability or profitability of any security or investment. Although the information contained in this document has been obtained from third-party sources believed to be reliable, PMA cannot guarantee the accuracy or completeness of such information. It is understood that PMA is not responsible for any errors or omissions in the content in this document and the information is being provided to you on an “as is” basis without warranties or representations of any kind.

Securities, public finance services and institutional brokerage services are offered through PMA Securities, Inc. PMA Securities, Inc. is a broker-dealer and municipal advisor registered with the SEC and MSRB, and is a member of FINRA and SIPC. Prudent Man Advisors, Inc., an SEC registered investment adviser, provides investment advisory services to local government investment pools and separate accounts. All other products and services are provided by PMA Financial Network, Inc. PMA Financial Network, Inc., PMA Securities, Inc. and Prudent Man Advisors (collectively “PMA”) are under common ownership.

Securities and public finance services offered through PMA Securities, Inc. are available in CA, CO, FL, GA, IL, IN, IA, KS, MI , MN , MO , NE, OH, OK, PA, SD, TX and WI. This document is not an offer of services available in any state other than those listed above, has been prepared for informational and educational purposes and does not constitute a solicitation to purchase or sell securities, which may be done only after client suitability is reviewed and determined. All investments mentioned herein may have varying levels of risk, and may not be suitable for every investor. PMA and its employees do not offer tax or legal advice. Individuals and organizations should consult with their own tax and/or legal advisors before making any tax or legal related investment decisions. Additional information is available upon request.


P  :  800.783.4273       E  :  INFO@PMANETWORK.COM       A  :  2135 CityGate Ln, 7th Floor, Naperville, IL 60563   -    © 2015, PMA Financial Network, Inc. 

chicagoland website design and development, website hosting illinois, cms web design chicago Website by: Andromeda Technology Solutions

Message: You will now be redirected to a third-party, PMA-partnered website. Select CONTINUE to confirm that you want to leave and view our current employment opportunities. Select CANCEL to remain on this page.