Stocks rose this morning as investors wait for the Federal Reserve to conclude their two-day policy meeting. Everyone is hoping to gain clues on where interest rates are heading. The central bank will release its policy statement at 2:00 p.m. It is expected that the Fed hold rates steady now but cut them in the near future. Adding to the investors’ optimism, President Trump and Chinese President Xi Jingping have agreed to meet at the G-20 summit in Japan.
Bond prices are down, and the 10-Year Treasury is yielding 2.09%. Many of the worlds largest central banks are moving toward an easier monetary policy. Now, in addition to a trade war, President Trump may ramp up a currency war. He has blamed currency manipulation overseas for a strong dollar that raises the cost of U.S. exports. Going forward, it is agreed upon that a currency war, in time of slow economic growth, is in no one’s interest.