Global Economic Insights: Global Effects of U.S. Monetary Policy

In the latest edition of Global Economic Insights, LeadingRE’s Chief Economist Dr. Marci Rossell, Ph.D., addresses how U.S. Monetary Policy impacts financial markets worldwide.

The Federal Open Market Committee of the Federal Reserve met and once again increased the Federal Funds Target Rate in September 2018. The impact of the most recent rate increase is being felt in financial markets worldwide, but unlike the last time we had a crisis like this in the late-1990s, there is no spillover effect into healthier markets.

After the financial crisis of 2008, the Federal Reserve kept interest rates low for about 10 years. A low interest rate environment in the United States tends to have two effects on emerging markets:

1. Global investors look worldwide for higher returns. Therefore, financial and bond markets do well in peripheral countries such as the Philippines, Indonesia, Turkey, Brazil, Argentina, South Africa and Russia.

2. Countries outside U.S. borders borrow in dollar denominated bonds.

However, as interest rates in the United States begin to rise, the opposite occurs:

1. Funds flow out of emerging markets.

• Stock markets in the Philippines, Indonesia, Turkey, Brazil, Argentina, South Africa and Russia have not done well yearto-date.

2. Debt borrowed in denominated dollars becomes more expensive to service.

• Interest rates have risen in Argentina.

• Turkey is experiencing a currency crisis.

GlobalEconInsights_MonetaryPolicy

Contact Christy and Garth Gillespie for more information on the real estate market.

Last Real Mountain Town | Stay Wild Jackson Hole

Jackson Hole is the most unique mountain town there is, surrounded by public lands and open spaces that harbor the most abundant wildlife and recreational access to wild lands. As other ski resort destinations are consolidating, Jackson Hole remains fiercely independent.

It is a celebration of Wyoming beauty, ruggedness and commitment to conservation and the people and places that make our area unique. A gateway to something more than ourselves. An opportunity to set ourselves free and to stay wild.

Winter has arrived in the spectacular Jackson Hole area. With an authentic, spirited, and distinctive Western mountain character, Jackson Hole is a popular destination for adventure seekers and families. Jackson Hole consistently gains notoriety around the globe from esteemed publications such as Forbes, Conde Nast and Ski Magazine, and consistently ranked #1 most easily accessible ski resort with nonstop flights from twelve major US cities.

The launch of the Private Jet Services Rendezvous Jet Card has made hitting the slopes even more convenient for visitors and residents. Jackson Hole Real Estate Associates has partnered with Private Jet Services, and we are happy to provide more information about the Rendezvous Jet Card.

As a market leader in the Jackson Hole area, we welcome the opportunity to be a resource regarding lifestyle and real estate in the Teton region. We look forward to hearing from you as you get acquainted with this incredible destination or to learn more about Jackson Hole. We are the Jackson Hole Experts.