From the Desk of Rick Dennen: Fed Holds Steady, Markets Stay Strong

Following today’s Federal Open Market Committee (FOMC) meeting, the Fed, as expected, maintained the current federal funds rate target range of 3.50% - 3.75%. After a third straight month of higher-than-expected inflation and job creation, there are increasing expectations that rates will remain at their current range for the remainder of 2026. It is also likely there will be continued market volatility due to the continued global conflicts in the Middle East.

*no data available from October 2025 due to government shutdown

However, the stock markets have remained resilient and there is a strong belief the markets will remain strong for the year. Look no further than SpaceX’s recent historic Nasdaq debut, the largest initial public offering in history, which raised a massive $75 billion and saw its stock surge 19% on its first day of trading. This resilience can be attributed to several factors. Firstly, many industries have reported strong corporate earnings, demonstrating the underlying strength of the U.S. economy. Secondly, the unemployment rate remains below 5%, with the latest reports reflecting a 4.3% unemployment rate. Lastly, although the most recent GDP report came in with slower overall growth than expected, consumer spending remains high, showing continued economic growth.

This market environment presents opportunities for forward-thinking businesses in the RIA, CPA, and insurance industries. M&A activity remains robust as solid valuations combined with a competitive landscape encourage more transactions. While some businesses may remain hesitant due to potential market uncertainty, those who capitalize on strategic M&A opportunities now will be well positioned for future growth.

Additionally, there are ample opportunities and justifications for investing in organic growth. Many businesses are investing in technology solutions that automate routine tasks and streamline workflows. This frees up your existing staff to focus on higher-value activities and allows you to potentially serve a larger client base, even with a limited team. As Artificial Intelligence (AI) continues to become more advanced, early adopters will be well ahead of competitors at maximizing the benefits. Integrating AI with a strong team of performers is a key to achieving growth and surpassing the competition.

With market conditions shifting and new growth opportunities emerging, now is the time for businesses to assess where they stand and how they can position themselves for the second half of the year and beyond. To continue this conversation, join our next webinar on July 10 as we explore the trends shaping the remainder of 2026. We look forward to answering your questions. Register to access the webinar here.