On The Radar: What is the federal funds futures market telling us about future Fed activity?

On the Radar is a biweekly publication providing quick and concise answers to the topical investment and economic questions that are on investors' minds.

To view this email as a web page, click here. OnTheRadar July 2019 FAQs on the Markets and Economy On the Radar is a biweekly publication providing quick and concise answers to the topical investment and economic questions that are on investors' minds. New questions in this issue: 1. What is the federal funds futures market telling us about future Fed activity? The December contract of federal funds futures market is currently pricing in a total of 50 bps in cuts this year. In the past year, expectations have swung from 50 bps in hikes (last autumn) to 75 bps in cuts (a few weeks ago). 2. What did we learn from the recent labor report? The June labor report was solid with gains in nonfarm payrolls leaping 224,000, much stronger than the 72,000 gain in May. 3. What is happening to the yield curve? The traditional view of the yield curve, the variance between the federal funds rate and the ten-year treasury note, has been inverted since late May. 4. Is the outlook for stocks still positive? We continue to have enough confidence in the economic outlook and see sufficient scope for earnings growth, to remain positive on U.S. Equites. 5. What is City National Rochdale's investment outlook? Given our continued positive assessment of the fundamental backdrop, we remain positive on equities in general and continue to see attractive prospects in the opportunistic fixed income class. Read More on CNR.com » Follow Us Investment management services provided by City National Bank through its wholly-owned subsidiary City National Rochdale, LLC, a registered investment advisor. City National Bank Member FDIC. Investment Products are: • not insured by the FDIC. • not a deposit or other obligation of, or guaranteed by, the bank. • subject to investment risks, including possible loss of the principal amount invested. Unsubscribe from this list  |  Update email preferences This message has been sent to bank@banking.offers.report. Please do not reply to this email. To ensure the delivery of future emails, please add email@emails.cnb.com to your email address book or safe sender list. Copyright © 2019 City National Bank – All Rights Reserved. 350 South Grand Avenue, Los Angeles, CA 90071 City National Bank is a subsidiary of Royal Bank of Canada. TERMS & CONDITIONS  |  PRIVACY STATEMENT NMLSR ID# 536994 | City National Bank Member FDIC