S&P 500 stayed flat while weak May retail sales increased expectations for Fed rate cuts
F fund achieved sixth straight weekly record high as bond prices continue rising
Fed meeting next week could provide clues on future interest rate direction
The S&P 500 had a relatively flat week closing at 2886 on both Monday and Friday. Economic news was light, but Friday’s May retail sales report was below expectations which created more chatter of an interest rate cut this summer. Next week the Federal Reserve has a two-day meeting to discuss monetary policy, so we may get some "Fed sentiment clues" on the direction of rates. For TSP TIPS, the F fund hit a new record high for the sixth week in a row, while the equity funds are holding in "neutral" territory. As such, TSP TIPS recommends staying with our current allocation. Lastly, we would like to wish all our dad subscribers a Happy Father\'s Day.
The S&P 500 had a relatively flat week closing at 2886 on both Monday and Friday. Economic news was light, but Friday’s May retail sales report was below expectations which created more chatter of an interest rate cut this summer. Next week the Federal Reserve has a two-day meeting to discuss monetary policy, so we may get some "Fed sentiment clues" on the direction of rates. For TSP TIPS, the F fund hit a new record high for the sixth week in a row, while the equity funds are holding in "neutral" territory. As such, TSP TIPS recommends staying with our current allocation. Lastly, we would like to wish all our dad subscribers a Happy Father\'s Day.