Amid a Busy Year, E*TRADE Study Reveals Investors Give the Fed Passing Grades
Investors also express significantly different views across generations on Fed actions
- Grades are good…but not aces. When grading the Fed on its management of monetary policy in 2017, just 13 percent of investors gave the Fed an "A", slightly less than half (48 percent) gave the Fed a "B", and nearly two out five (39 percent) gave the Fed a "C" or lower.
- Investors are split on whether new Fed leadership could benefit the economy. Slightly more than half of investors (51 percent) believe a change in Fed leadership is positive for the economy.
- Investors are also split on the pace of rate hikes this year. Slightly more than half of investors (51 percent) agree with the pace at which the Fed raised rates this year.
"Monetary policy is top of mind for many investors these days, especially as we approach the last Fed meeting of the year," commented
- Boomers are most likely to want to stay the course. More than two out of five (45 percent) Boomers think a change in leadership is negative for the economy—the most out of any age group. This group is also the most likely to think the rate hikes were correctly paced.
- Millennials are more likely to think the Fed raised rates too quickly. 44 percent of Millennials—nearly double the percentage of Gen Xers and nearly five times that of Boomers—think the pace of rate hikes this year was fast. Having spent the majority of their financial lives in a low rate environment, Millennials may be concerned about investing conditions if interest rates rise significantly.
- …and Millennials are also most likely to welcome new leadership. 63 percent of Millennials believe a change in Fed leadership is positive for the economy.
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About the Survey
This wave of the survey was conducted from
|What grade would you give the
When it comes to the economy, do you think a change in
|Positive (Top 2 Box)||51%||63%||52%||37%|
|Negative (Bottom 2 Box)||35%||27%||34%||45%|
Do you think the pace at which the
|Fast (Top 2 Box)||27%||44%||23%||9%|
|Neither too fast nor too slow||51%||41%||54%||63%|
|Slow (Bottom 2 Box)||22%||15%||23%||28%|
"Millennials" defined as age 25-34 // "Gen X" defined as age 35-54 // "Baby Boomers" defined as age 55+
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