Video Reports

Embed this video

Copy Code

Link to this video

Get LinkEmbedLicenseRecommend (-)Print
Bookmark and Share

By Jason Stipp and Jeremy Glaser | 05-22-2015 09:00 AM

Friday Five: Fed Takes the Market's Hand

The fact that the Fed minutes were a non-event this week is a good sign for its communication policy. Plus, Wal-Mart shares a good buy for the patient, and more.

Jason Stipp: I'm Jason Stipp for Morningstar and welcome to The Friday Five, Morningstar's take on five stories in the market this week.

Joining me with The Friday Five is Morningstar markets editor Jeremy Glaser.

Jeremy, thanks for being here.

Jeremy Glaser: You're welcome, Jason.

Stipp: Up first this week, we got Fed minutes, and it doesn't look like a June rate hike is going to be in the cards.

Glaser: These minutes confirmed that a June rate hike seems to be almost essentially off the table. That doesn't mean they won't hike rates later this year, but it just seems like, with the soft data that we've seen recently, particularly through the first quarter, the Fed is not ready to go ahead and move those rates upward yet.

I think the fact that people aren't terribly surprised by these minutes or this announcement shows that the Fed's communication strategy, at least for now, is working pretty well. The Fed, either through public speeches or through their statements, seems to be helping to guide the market to their thinking in a very gradual way, hoping to avoid some of the issues with the taper tantrum we saw, when they were going to start winding down QE and rates kind of got away from them very quickly.

The fact that this was seen as a non-event is a good sign for that communication policy.

Stipp: We also heard this week that six banks will be paying billions of dollars to settle currency-related issues--currency fixing. What's the story there?

Read Full Transcript

{0}-{1} of {2} Comments
{0}-{1} of {2} Comment
  • This post has been reported.
  • Comment removed for violation of Terms of Use ({0})
    Please create a username to comment on this article