September 2026 Client Question of the Month – The Fed | Winthrop Wealth
By Andrew Murphy, CFA
Co-Chief Investment Officer
A look at how the Federal Reserve works, from its structure and tools to its balance sheet, and how monetary policy affects rates, the economy, and stocks.
Source: Federal Reserve
Source: Federal Reserve, Bloomberg, Winthrop Wealth.
Source: Bloomberg.
Source: Winthrop Wealth.
For clients who receive both financial planning and investment advisory services under agreement. No strategy assures success or protects against loss. Investing involves risk, including loss of principal.
This material is provided for informational and educational purposes only and should not be construed as individualized investment, tax, legal, or financial planning advice. The information is not intended as a recommendation to buy, sell, or hold any security, investment strategy, or asset class, and should not be relied upon as the sole basis for making investment decisions. Investors should consult with their financial, tax, and legal professionals regarding their individual circumstances before making any investment decision.
The views expressed are based on market and economic conditions as of the date of publication and are subject to change without notice. Forward-looking statements, market commentary, opinions, expectations, and references to potential Federal Reserve policy decisions may not develop as anticipated. There can be no assurance that any investment strategy, planning approach, or market expectation discussed will be successful.
Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. Investment returns and principal values will fluctuate, and investors may experience gains or losses. No investment strategy, asset allocation, diversification, or planning technique can guarantee a profit, prevent a loss, or eliminate market risk.
References to interest rates, inflation, Federal Reserve policy, Federal Funds Rate expectations, market-implied probabilities, household net worth, consumer spending, and other economic or market data are provided for general informational purposes only. Such information may change quickly and should be understood as of the date stated or, if no date is stated, the date of publication.
Unless otherwise noted, charts, examples, quotations, and statistics are based on historical market and economic data from sources believed to be reliable, including the Federal Reserve, Bloomberg, and other third-party sources identified in the piece. Winthrop Wealth has not independently verified all third-party data and does not guarantee its accuracy or completeness.
Market-implied probabilities and expectations, including any probabilities or expected paths for future Federal Reserve rate decisions, are derived from market pricing and are not predictions or guarantees. Market pricing can change materially in response to new economic data, Federal Reserve communications, geopolitical developments, inflation trends, changes in commodity prices, or other factors.
Any discussion of Federal Reserve policy, Quantitative Easing, Quantitative Tightening, the Federal Reserve balance sheet, inflation, employment, or economic growth is intended to explain general economic concepts and market context. These discussions should not be interpreted as political commentary, a forecast of future Federal Reserve actions, or a guarantee of future economic or market outcomes.
Third-party quotations are included for informational and educational purposes only. The inclusion of any quotation does not constitute an endorsement by or of the quoted individual or source and should not be interpreted as investment advice, a recommendation, or a prediction of future market performance.
Stock investing involves risk, including fluctuating prices and loss of principal. Changes in monetary policy, interest rates, inflation expectations, economic growth, corporate earnings, investor sentiment, and other factors may affect equity prices in different ways. Statements regarding the potential relationship between monetary policy, interest rates, and stock prices are general in nature and may not apply in all market environments.
Asset allocation and diversification are intended to manage risk but do not ensure a profit or protect against loss. A diversified portfolio may not outperform a non-diversified portfolio, and diversification does not protect against market risk. Rebalancing, tax-loss harvesting, and other portfolio management techniques may involve costs, tax consequences, or other considerations and may not be appropriate for all investors.
Financial planning is intended to review a client’s current financial situation, investment objectives, risk tolerance, time horizon, and goals, and to suggest potential planning ideas and concepts that may be beneficial. There is no guarantee that financial planning will help a client reach any particular goal. Winthrop Wealth’s Total Net Worth Approach applies only to clients who receive both comprehensive financial planning and investment management services under agreement.
Winthrop Wealth does not provide tax or legal advice. Any references to tax mitigation strategies, tax planning opportunities, or account structure considerations are general in nature and should be reviewed with the client’s tax and legal professionals based on the client’s individual circumstances.
Winthrop Advisory Group, LLC d/b/a Winthrop Wealth is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. Additional information about the firm is available through its Form ADV and other regulatory filings.
< COMMENTARY
Client Questions | September 04, 2026
September 2026 Client Question of the Month – The Fed | Winthrop Wealth
By Andrew Murphy, CFA
Co-Chief Investment Officer
A look at how the Federal Reserve works, from its structure and tools to its balance sheet, and how monetary policy affects rates, the economy, and stocks.
DISCLOSURES
Source: Federal Reserve
Source: Federal Reserve, Bloomberg, Winthrop Wealth.
Source: Bloomberg.
Source: Winthrop Wealth.
For clients who receive both financial planning and investment advisory services under agreement. No strategy assures success or protects against loss. Investing involves risk, including loss of principal.
This material is provided for informational and educational purposes only and should not be construed as individualized investment, tax, legal, or financial planning advice. The information is not intended as a recommendation to buy, sell, or hold any security, investment strategy, or asset class, and should not be relied upon as the sole basis for making investment decisions. Investors should consult with their financial, tax, and legal professionals regarding their individual circumstances before making any investment decision.
The views expressed are based on market and economic conditions as of the date of publication and are subject to change without notice. Forward-looking statements, market commentary, opinions, expectations, and references to potential Federal Reserve policy decisions may not develop as anticipated. There can be no assurance that any investment strategy, planning approach, or market expectation discussed will be successful.
Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. Investment returns and principal values will fluctuate, and investors may experience gains or losses. No investment strategy, asset allocation, diversification, or planning technique can guarantee a profit, prevent a loss, or eliminate market risk.
References to interest rates, inflation, Federal Reserve policy, Federal Funds Rate expectations, market-implied probabilities, household net worth, consumer spending, and other economic or market data are provided for general informational purposes only. Such information may change quickly and should be understood as of the date stated or, if no date is stated, the date of publication.
Unless otherwise noted, charts, examples, quotations, and statistics are based on historical market and economic data from sources believed to be reliable, including the Federal Reserve, Bloomberg, and other third-party sources identified in the piece. Winthrop Wealth has not independently verified all third-party data and does not guarantee its accuracy or completeness.
Market-implied probabilities and expectations, including any probabilities or expected paths for future Federal Reserve rate decisions, are derived from market pricing and are not predictions or guarantees. Market pricing can change materially in response to new economic data, Federal Reserve communications, geopolitical developments, inflation trends, changes in commodity prices, or other factors.
Any discussion of Federal Reserve policy, Quantitative Easing, Quantitative Tightening, the Federal Reserve balance sheet, inflation, employment, or economic growth is intended to explain general economic concepts and market context. These discussions should not be interpreted as political commentary, a forecast of future Federal Reserve actions, or a guarantee of future economic or market outcomes.
Third-party quotations are included for informational and educational purposes only. The inclusion of any quotation does not constitute an endorsement by or of the quoted individual or source and should not be interpreted as investment advice, a recommendation, or a prediction of future market performance.
Stock investing involves risk, including fluctuating prices and loss of principal. Changes in monetary policy, interest rates, inflation expectations, economic growth, corporate earnings, investor sentiment, and other factors may affect equity prices in different ways. Statements regarding the potential relationship between monetary policy, interest rates, and stock prices are general in nature and may not apply in all market environments.
Asset allocation and diversification are intended to manage risk but do not ensure a profit or protect against loss. A diversified portfolio may not outperform a non-diversified portfolio, and diversification does not protect against market risk. Rebalancing, tax-loss harvesting, and other portfolio management techniques may involve costs, tax consequences, or other considerations and may not be appropriate for all investors.
Financial planning is intended to review a client’s current financial situation, investment objectives, risk tolerance, time horizon, and goals, and to suggest potential planning ideas and concepts that may be beneficial. There is no guarantee that financial planning will help a client reach any particular goal. Winthrop Wealth’s Total Net Worth Approach applies only to clients who receive both comprehensive financial planning and investment management services under agreement.
Winthrop Wealth does not provide tax or legal advice. Any references to tax mitigation strategies, tax planning opportunities, or account structure considerations are general in nature and should be reviewed with the client’s tax and legal professionals based on the client’s individual circumstances.
Winthrop Advisory Group, LLC d/b/a Winthrop Wealth is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. Additional information about the firm is available through its Form ADV and other regulatory filings.