State Street Comments on Federal Open Market Committee Meeting

Wednesday, July 31, 2019 4:16 pm EDT

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BOSTON

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NYSE:
STT

July 31, 2019 – In reaction to today’s US Federal Open Market Committee (FOMC) meeting, Lee Ferridge, head of multi-asset strategy, the Americas at State Street Global Markets.

Ferridge commented, “As widely expected, the FOMC cut rates for the first time in 10 years. However, the accompanying statement and subsequent press conference appeared designed to rein back market expectations of another three cuts to come over the next 12 months. The Fed is clearly concerned by the recent data slowdown in parts of the economy (although notably not in the labor market) and continued soft inflation prints. While this move was characterised as more of an insurance cut, the FOMC may now be in wait and see mode to see if its fears over the trade war and global slowdown come to fruition. This less dovish message is likely to see short rates rise and the yield curve to flatten. It is also likely to see the USD gain further, while equity markets are unlikely to welcome the reduced prospects of more rate hikes to come."

About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors, including investment servicing, investment management and investment research and trading. With $32,754 billion in assets under custody and administration and $2,918 billion* in assets under management as of June 30, 2019, State Street operates globally in more than 100 geographic markets and employs approximately 40,000 worldwide. For more information, visit State Street's website at www.statestreet.com.

* Assets under management include the assets of the SPDR® Gold ETF and the SPDR® Long Dollar Gold Trust ETF (approximately $36 billion as of June 30, 2019), for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.

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