Merk Research: Fed Report, May 2019

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Includes: BIL, DFVL, DFVS, DLBS, DTUL, DTUS, DTYL, DTYS, EDV, EGF, FIBR, GBIL, GOVT, GSY, HYDD, IEF, IEI, ITE, PLW, PST, RINF, RISE, SCHO, SCHR, SHV, SHY, TAPR, TBF, TBT, TBX, TLH, TLT, TMF, TMV, TTT, TUZ, TYBS, TYD, TYNS, TYO, UBT, UDN, USDU, UST, UUP, VGIT, VGLT, VGSH, VUSTX, ZROZ
by: Axel Merk
Summary

The Fed’s monetary policy has important implications for the bond, stock, and currency markets, and the economic cycle generally.

My goal is to track the data that I think Fed officials, and Chair Powell specifically, are most focused on based on ongoing public communications.

The Fed is concerned about the potential for continued muted inflation.

Originally published May 1, 2019

As part of Merk's in-house research we regularly evaluate a consistent set of charts covering the economy, equities, fixed income, commodities and currencies. The aim is to keep our eyes open and to look through the noise of the headlines, avoiding the distractions of sensationalized click-bait. In sharing this content, we offer a cross-check to your own thinking and aim to add value to your own process.

Today's topic: The Federal Reserve

The market pricing is substantially below the FOMC participants' assessments of appropriate monetary policy for year end 2019 and 2020.

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.