Fed Up

This is Doug Tengdin from Charter Trust with the Global Market Update for Tuesday, October 28th, 2008. Remember the Fed? We used to stop everything and watch. Not lately

It seems rather quaint to be talking about the Federal Reserve and interest rates. Kind of like soldiers coming back from a war zone being warned about various health risks. When you’ve looked at the end of the world, other issues pale in comparison.

But even if the credit crisis has been taking center stage, interest rates are important, if only as a signal. Because with the Fed acting as a clearinghouse for bank lending now, the Fed’s target rate will have a real impact on bank profits.

I know, why should we care? Well, I care because if the banks can earn a profit on low-risk investments, then they can pay back some of that $700 billion they’re borrowing. And if the Fed engineers some kind of quick recovery from this economic funk that we’re in, we can all breath again.

They’re meeting again today. Let’s hope their actions have some positive consequences.

Douglas R. Tengdin, CFA
Chief Investment Officer
Hit reply if you have any questions—I read them all!

Follow me on Twitter @GlobalMarketUpd

direct: 603-252-6509
reception: 603-224-1350

www.chartertrust.com • www.moneybasicsradio.com • www.globalmarketupdate.net
By |2014-09-04T14:21:52+00:00October 28th, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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