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Rates As expected, the FOMC unanimously voted to keep the Fed Funds target rate unchanged within the 0.00% to 0.25% range. The Fed shifted forward guidance significantly more hawkish in its updated dot plot, with three rate hikes now expected in 2022 (vs. a 9-9 committee split for just one

Background Inflation has surged in 2021, with the consumer price index (CPI) hitting a recent high of 5.4% year-over-year and the less volatile Core CPI, which excludes food and energy, reaching 4.5%. These were the largest gains for the two indices since 2008 and 1991, respectively. The Federal Reserve, responsible

Please find the next blog in our monthly series that provides a snapshot of the markets and the state of the economy. Economic Overview Equity markets surged in October as strong earnings countered worries about inflation and weaker growth US GDP rose a weaker-than-expected 2.0% in the third quarter, with

Rates The FOMC unanimously voted to keep the Fed Funds target rate unchanged within the 0.00% to 0.25% range. Market implied probabilities indicate investors are pricing in a reasonable likelihood of at least one rate increase by the middle of next year and a strong probability of at least two

Please find the next blog in our monthly series that provides a snapshot of the markets and the state of the economy. Economic Overview Risk assets declined in September as investors reacted to weaker economic data, the debt ceiling fight, and shifting policy support Fed messaging tilted more hawkish, with

Background Since March 2020, the Fed’s quantitative easing program, meant to stabilize the economy amidst the economic challenges of Covid-19, has supported markets through the purchase of Treasuries and mortgage-backed securities. While quantitative easing was just one component of the Fed’s stimulus in 2020, its continued presence has drawn considerable

Please find the next blog in our monthly series that provides a snapshot of the markets and the state of the economy. Economic Overview Consumer sentiment had another precipitous drop in August, weighed down by the rapidly spreading Delta variant YoY Inflation remains elevated but monthly increases have moderated, suggesting

Please find the next blog in our monthly series that provides a review of the prior month’s market data, the state of the economy, and the global financial markets. Global Economy: The spread of the Delta variant led to renewed concerns around Covid in July, with equity returns mixed and

Please find the next blog in our monthly series that provides a review of the prior month’s market data, the state of the economy, and the global financial markets. Global Economy: The rally in risk assets continued despite high inflation and a more hawkish Fed as other economic news was

Rates Yesterday, the FOMC voted to keep the Fed Funds target rate unchanged within the 0.00% to 0.25% range. This outcome was widely expected, and the committee members voted unanimously in favor of the action. Forward guidance on monetary policy now indicates that rate hikes could come as soon as