As a result of less US fiscal support and a reduction of monetary accommodation by the Federal Reserve (Fed), we believe economic growth in 2022 is likely to moderate but will remain above-trend. We expect the healthy labor market will help drive economic growth this year as the critical health situation improves globally. Consumer spending, the largest component of US GDP, should also remain solid, supported by healthy consumer balance sheets and a potential shift in spending toward more services rather than goods. Over the near-term, we expect financial market volatility to remain elevated with heightened geopolitical risk, persistent inflation due in part to supply chain bottlenecks, and the Fed’s pivot to less accommodative monetary policy. Inflation readings continue to run hot, however, we believe inflation may be at or near a peak, while pricing pressures are likely to abate as we move through the year but are expected to remain above pre-pandemic levels.