The Weekly Brief
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A Rising Fed Funds Rate
The Fed has significantly changed their expectations on interest rates and the economic outlook since early last year.
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Hitting the Brakes
More aggressive action from the Federal Reserve could be on the horizon as inflation remains stubbornly high.
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Slowing Growth in Europe
Growth is slowing much faster in Europe than in the US. This could result in fewer rate hikes from the European Central Bank.
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Falling CEO confidence
CEO business confidence levels have fallen significantly, a trend that raises the risk of a hard landing.
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Declining Car Sales
The overall economy remains strong, however cracks are appearing in interest-rate sensitive areas like housing and auto sales.
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Consumer Spending Still Strong
The US consumer is simply not slowing down, which means the Fed has more work to do to cool the economy off to get inflation down.
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A Long Road Ahead
Although inflation may have peaked, markets should expect a long, bumpy ride as the Fed works to bring inflation closer to its 2% target.
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Job Growth Accelerates (Again)
Last week’s surprisingly strong job numbers indicate that the US economy continues to hold strong despite rising interest rates.
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Rate Cuts Ahead?
Speculation is building that the Fed will begin to cut interest rates early next year— prioritizing growth over inflation.