Pressing Pause

Market Minute

June 2023 – By Scott Rosenquist, CFA®

Recent commentary from two Federal Reserve officials have increased the odds of a pause on interest rate hikes after their upcoming meeting.  This was a sharp change from previous market expectations that another hike could be on the way. Fed Chair Jerome Powell spoke in May and highlighted the significant policy tightening that has taken place and the uncertainty of the lagged effects on the economy.  “Having come this far, we can afford to look at the data and the evolving outlook to make careful assessments,” he said. The latest strong employment report did little to change this setup going into next week’s meeting.  The Fed chair’s communication will be closely watched for future policy moves including the possibility of resuming hikes in July.  Other central banks recently resumed raising rates after a pause. 

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Give Your Bank Account a Raise

Market Memo

May 2023 – By Kyle Rohrwasser

Since February 2022 the Federal Funds rate has increased from 0% to 5%. So, your bank savings account should reflect that in some capacity, right? You wouldn’t expect to get 5% yield on your savings account but if the bank can borrow your money and earn 5% in short term treasuries (considered the safest investment in the world) you assume you would be compensated for letting them use your funds. The answer would surprise you; we are still seeing the historically low interest rates on bank accounts we saw a year ago. I looked up what the Chase Savings interest rates are, and they are basically 0% with the annual percentage yield is 0.01%.

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Advance Directives: Living Wills, Health Care Powers of Attorney, and Do Not Resuscitate Orders

Market Memo – Planning Article

May 2023 – By Tom Rueger, J.D., CFP®

In general, an Advance Directive is a document that instructs others about your preferences for medical care if you are unable to make decisions on your own or unable to communicate your wishes to others. Advance Directives can give instructions on your preferences regarding the decisions of doctors and caregivers if you are terminally ill, seriously injured, in a coma, in the late stages of dementia, or near the end of life.  They only become effective under the circumstances stated in the document. Advance Directives can communicate the treatment that you want and don’t want. They can help avoid unnecessary suffering, reduce confusion or disagreement, and relieve caregivers from the burdens of making decisions.  An Advance Directive does not remove any decision-making authority from you while you are still competent since you can always override any decision or revoke any Directive that you have made.

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We Volunteered at Feed My Starving Children!

This week our team had the opportunity to volunteer at Feed My Starving Children! We packed 32,832 meals which will feed 90 children for a year. We as an organization believe in Investing in Kindness and this was an excellent opportunity for our team to do just that. Thank you to the team at Feed My Starving Children in Schaumburg, not only was it rewarding but it was also fun!