Mon, April 01, 2019
Equities rebounded strongly to start the year, as many of the fears that dominated the headlines in December faded from view. The longest government shutdown in history ended after 35 days. The Federal Reserve responded to slowing economic growth by pausing rate hikes and Fed Chair Jerome Powell provided more clarity on the Fed’s balance sheet reduction plans. Speculation that President Trump would fire Powell subsided; however, the nomination of Herman Cain and potential nomination of Fed critic Stephen Moore to the Federal Reserve Board of Governors is a signal that Trump will blame Powell for slowing economic growth. The U.S. and China seemingly closed in on a trade deal, though details remain elusive.