The Fed Raises Rates

Published: May 6, 2022

On May 4, 2022, the Federal Open Market Committee (FOMC), as expected, announced a 0.50% increase in the overnight Fed Funds rate in response to increasing pressure to control inflation. While the markets initially reacted positively, this was followed by a sharp downturn, and we anticipate ongoing volatility as the markets and the economy absorb this move and the probability of future rate hikes.
Klingenstein Fields Advisors continues to believe in long-term investing, and we seek to avoid emotional decision-making based on short-term market shifts. However, we are carefully watching the markets and monitoring portfolios to identify the potential to control risk or benefit from investment opportunities that may arise.
We understand that the current market activity may be causing anxiety and stress, and we are here as a trusted resource to help you navigate through uncertain times. We encourage to reach out to us with any questions you may have by phone at 212.492.7000 or email us at info@klingenstein.com.

Important Disclosures

This material is provided for informational or educational purposes only and should not be construed as investment, accounting, tax or legal advice. Always consult a financial, tax and/or legal professional regarding your specific situation. This communication is not intended as a recommendation or as investment advice of any kind. It is not provided in a fiduciary capacity and may not be relied upon for or in connection with the making of investment decisions. Nothing herein constitutes or should be construed as an offering of advisory services or an offer to sell or a solicitation to buy any securities or a recommendation to invest in any specific investment strategy. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future returns. The views expressed herein are as of a particular point in time and are subject to change without notice. The information and opinions presented herein are general in nature and have been obtained from, or are based on, sources believed by Klingenstein Fields Advisors (“KF Advisors’) to be reliable, but KF Advisors makes no representation as to their accuracy or completeness. Although the information provided is carefully reviewed, KF Advisors cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided. KF Advisors represents two investment advisers registered with the Securities and Exchange Commission: Klingenstein, Fields & Co., L.P. and KF Group, LP. If you are a KF Advisors client, please remember that it remains your responsibility to advise KF Advisors, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.