What's your take on the changing makeup of the Fed?
The transition at the Fed is nearly complete and is shaping up nicely without any unconventional picks. The composition at the FOMC if all of the nominees are in fact confirmed, are made up of well-respected individuals who are strong in terms of market orientation and academic background. The nomination of Richard Clarida is a perfect example of this. He brings a very strong academic background combined with the market orientation that should be a strong compliment to Fed Chair Powell. There are of course other members of the FOMC and there's at least one vacancy left to be filled, but it's the big three, the power three, the Chair, Vice Chair, the New York Bank president. Those three really form the core of the FOMC and together represent a moderate centrist view with respect to monetary policy that should not be alarming to the markets at large.
Views are as of April 19, 2018 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector. Federated Investment Management Company 18-74215 (4/18)