Amid Global Anxiety, Today is All About the Fed

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U.S. inflation dropped more than the consensus expectation last month, down to 1.3 percent year-over-year.Whether the Fed focuses more on PCE inflation or core inflation at tonight’s FOMC meeting, these inflation figures suggest no change is likely in Fed outlook for monetary policy.But it is still a close call. For our part, we believe any rate change is unlikely until third quarter 2015 at the earliest.Turmoil over the Russian ruble as well as other currency relationships, growth trajectories, safe haven investments and the drop in oil prices will assuredly keep market volatility at the forefront of U.S. investors’ minds. In any event, maintaining effectively diversified portfolios is always fraught with challenges that are best overcome by an unshakeable investment philosophy. Follow U.S. monetary policy trends on page 45 of the Global Perspectives book.

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