The Federal Reserve is presented with a unique balancing act in 2023: taming any remaining inflationary pressures without causing a broader economic slowdown.
Our market commentary highlights our current views and analysis of global stock, bond, and commodity markets.
We expect the Federal Reserve to continue battling inflation into 2023, potentially triggering an uptick in unemployment and downtick in economic growth.
In May we indicated we were not yet seeing signs of an economic recession developing. Six weeks later, the risk of an economic contraction is increasing.
The stock market, as measured by the S&P 500, is currently down for its 8th week in a row, falling close to 20% year-to-date. The main reason for the decline is that investors are nervous about whether the economy is heading into a recession. Specifically, they are worried that the Federal Reserve, in its fight …
Those hoping the world would return to relative normalcy following the omicron variant’s peak in January were left disappointed, as Russia invaded Ukraine in February. In addition to stirring geopolitical tensions, the invasion strained global oil supplies, which added to the existing forces causing the highest inflation in forty years. Source: St. Louis Federal Reserve …