Investors continued to weigh the probabilities of a hard or soft economic landing in the face of continued rate increases by the Federal Reserve. Strength in the labor market has helped sustain economic growth, while inflation remains significantly higher than the Federal Reserve’s target. The technology sector remains weak albeit after a strong run up during the pandemic. Geopolitical risks persist as the Russia and Ukraine war continues and tensions between the US and China linger. Domestically, a lack of progress toward a resolution of the debt ceiling continues to pose a risk to financial markets and economic growth. We believe the Fed will continue to raise rates and maintain a higher terminal rate for an extended period until inflation reaches the Fed’s target range.