Chandler Announces New CEO
Nicole Dragoo is being promoted from President to CEO of Chandler Asset Management
11/04 – Weekly Economic Highlights
As expected at the November 2nd meeting, the Federal Open Market Committee (FOMC) raised the fed funds target rate by 75 basis points for the fourth consecutive time to a range of 3.75 – 4.00%, the highest level since 2008. The statement was initially perceived by the market as dovish, with the possibility of slowing the pace of rate hikes as soon as December or February. However, as the press conference unfolded, a more hawkish tone became evident. Fed Chair Powell indicated that the Fed has “a ways to go” with rate hikes to combat persistently high inflation, and that it is “premature to be thinking about” pausing. He reiterated that the risks of pausing too soon outweigh the risks of slower economic growth. He commented that rates would likely reach higher levels than projected and that policy would need to remain restrictive for some time. The Fed acknowledged the cumulative tightening of monetary policy and the lag in its effects on inflation and the economy. There was no change to the pace of balance sheet reduction, which is expected to continue at a pace of approximately $95 billion per month.
10/28 – Weekly Economic Highlights
Financial markets remain volatile as inflation data continues to point toward further increases in interest rates by global central banks. This week, companies continued to report third quarter results with several firms reporting positive earnings surprises. However, on a year-over-year basis, companies in the S&P 500 are reporting their lowest earnings growth since the third quarter of 2020. The effects of higher inflation are apparent in overall corporate profits thus far.
10/21 – Weekly Economic Highlights
At the top of global news this week, the United Kingdom’s Prime Minister Liz Truss announced her resignation as the rapidly expanding chaos surrounding her government proved too much of a burden to effectively lead the UK out of the political and financial morass in which it finds itself. Following credibility-sapping U-turns on September’s mini-budget, enforced cabinet reshuffles, and plunging personal and party opinion poll readings, Thursday’s statement of resignation came as little surprise to financial markets. Initial reaction to the news was mildly positive with gilt yields slightly lower and the pound a little firmer. Key for financial markets is whether Conservative MPs can unite sufficiently to agree on a new leader and provide some stabilization for the world’s sixth largest economy.
10/14 – Weekly Economic Highlights
Market volatility intensified this week as global central banks acted to maintain financial stability. The Bank of England intervened to avoid a crash in the gilt market following the surge in bond yields triggered by the government’s proposed unfunded tax cuts. The central bank suspended quantitative tightening and instead pledged unlimited purchases of long-dated bonds to restore market functioning and reduce credit contagion risks. Yields fell dramatically across the curve in the US and UK bond markets. This followed the Japanese government’s intervention last week, with purchases of yen in an effort to support the exchange rate while the central bank maintained ultra-low interest rates.
October 2022 – Bond Market Review
Financial markets are experiencing heightened volatility and tighter conditions as central banks employ more restrictive monetary policies to combat persistent inflation.
10/7 – Weekly Economic Highlights
Market volatility intensified this week as global central banks acted to maintain financial stability. The Bank of England intervened to avoid a crash in the gilt market following the surge in bond yields triggered by the government’s proposed unfunded tax cuts. The central bank suspended quantitative tightening and instead pledged unlimited purchases of long-dated bonds to restore market functioning and reduce credit contagion risks. Yields fell dramatically across the curve in the US and UK bond markets. This followed the Japanese government’s intervention last week, with purchases of yen in an effort to support the exchange rate while the central bank maintained ultra-low interest rates.
Chandler Announces New Hire
Chandler Asset Management, new hires, Ben Mndenhall, Senior Relationship Manager
9/30 – Weekly Economic Highlights
Market volatility intensified this week as global central banks acted to maintain financial stability. The Bank of England intervened to avoid a crash in the gilt market following the surge in bond yields triggered by the government’s proposed unfunded tax cuts. The central bank suspended quantitative tightening and instead pledged unlimited purchases of long-dated bonds to restore market functioning and reduce credit contagion risks. Yields fell dramatically across the curve in the US and UK bond markets. This followed the Japanese government’s intervention last week, with purchases of yen in an effort to support the exchange rate while the central bank maintained ultra-low interest rates.
9/23 – Weekly Economic Highlights
The U.S. economy added 528,000 jobs in July, more than double market expectations of 250,000, and job gains were revised up by 28,000 for the prior two months. Trends in employment remain strong, with the three-month moving average payrolls at 437,000 and the six-month moving average at 465,000.