Please let me off—I’m getting dizzy!
That is how I feel about the Federal Reserve’s approach to managing Fed fund rates. And I don’t think I’m alone.
The ride we have all been on has been fast, slow, and every which way. One moment the Fed is set to raise rates and then it comes to a sudden reversal given domestic and international data or events.
Last year I advocated that the Federal Reserve should go back to a “one-voice” policy as it was under Alan Greenspan. The only voice I want to hear is that of Fed Chair Janet Yellen—and that it be clear and decisive.
The merry-go-round strategy they currently use is not a fun ride. I feel each member of the Federal Reserve board represents a horse of a different color, each voicing a different opinion. Around and around we go and where and when it will stop nobody knows.
This approach by the Fed may be very intentional, but at some point it has to stop. We need a direction that can allow all of us to strategize and plan for the future.
I’m ready for a new ride but, in the meantime, my advice is to focus on one item that can provide stability, comfort, and show results, rather than going around in circles.
At three+one we are using this time of uncertainty at the Fed to turn low-performing and non-performing cash into revenue-generating assets for our clients. Even in this low interest rate environment, we can help you put a time value on your cash and help it become a revenue-generating asset.
So while the Fed may be going around in circles, you can go in new direction by driving a new source of revenue off your cash.
We Hope to See You at our Upcoming Presentation:
GFOA of SC – October 16 – 19
North Country NY GFOA – October 20th