6/10- Weekly Economic Highlights
Financial market participants continued to assess the impact of higher energy prices and new inflation data on the economy and the future path of interest rates this week. US inflation data was worse than expected in May, hitting a 40-year high with broad based price increases for most goods and services.
6/3- Weekly Economic Highlights
This morning the market digested updates on inflation and the health of the US consumer with the Personal Consumption Expenditures (PCE) Price Index for April coming in lower than the previous month, but still running well above average at +6.3% year-over-year.
5/27- Weekly Economic Highlights
This morning the market digested updates on inflation and the health of the US consumer with the Personal Consumption Expenditures (PCE) Price Index for April coming in lower than the previous month, but still running well above average at +6.3% year-over-year.
5/20- Weekly Economic Highlights
Market volatility remains elevated and the sought after ‘consolidation phase’ with more stable market dynamics in both the equity and fixed income sectors remains elusive. Risk assets performed well on Tuesday, post the constructive retail sales report, only to move lower on Wednesday as idiosyncratic news on the state of the consumer linked to the performance of big box retailers caused market angst.
May 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. Risk assets have sold off and bond returns have been negatively impacted by the dramatic rise in rates.
5/13- Weekly Economic Highlights
Market volatility continued this week as investors absorbed new inflation data and the prospect of further rate hikes by the Federal Reserve in response. U.S. consumer price increases exceeded consensus forecasts in April, while moderating slightly from March. The Consumer Price Index (CPI) was up 8.3% year-over-year in April, higher than the 8.1% consensus estimate but down from 8.5% year-over-year in March.
5/6- Weekly Economic Highlights
Financial markets remained volatile this week after digesting the actions of the Federal Open Market Committee (FOMC). The FOMC announced it would raise the federal funds rate by 0.50% to a range of 0.75%- 1.00% and begin shrinking its $9 trillion balance sheet starting June 1st. The FOMC will initially reduce its balance sheet by $47.5 billion, increasing to $95 billion per month after three months with a combination of US Treasury, agency debt, and agency mortgage-backed securities. Federal Reserve Chair Powell took steam out of market speculation that the Fed would further ratchet up its pace of tightening by saying “a 75 basis point increase is not something the committee is actively considering,” which provided a catalyst for lower short term rates in the near term.
Chandler – SDBJ Wealth Management Firm
The San Diego Business Journal publishes the list of the top 40 wealth management firms in San Diego every year.
4/29- Weekly Economic Highlights
US GDP unexpectedly declined at an annualized rate of 1.4% in the first quarter of 2022, coming off an exceptionally high growth rate of 6.9% in Q421. The economy contracted mostly due to a significant increase in the trade deficit, with more imports than exports as domestic consumer demand remained strong, while lockdowns in China and the war in Ukraine took a toll on global demand for US products.
4/22- Weekly Economic Highlights
Volatility across asset classes remains elevated as market participants continue to recalibrate expectations on the trajectory of monetary policy, the subsequent impact on asset valuations, and the overall impact to the domestic and global economy.