Latest Insights

As expected at the December 14th meeting, the Federal Open Market Committee (FOMC) raised the fed funds target rate by 50 basis points to a range of 4.25 – 4.50%, in a downshift from four consecutive 75 basis point hikes. The decision was unanimous, and there was no change to the November statement. The sentiment was hawkish, indicating that “ongoing increases” in the fed funds rate are likely appropriate and citing continued labor market imbalances.

Economic data releases were light and bond yields remained volatile this week as market participants positioned their portfolios ahead of next week’s Federal Open Market Committee’s (FOMC) two-day meeting starting next week on December 13th. We believe the FOMC is likely to increase the federal funds rate 0.50% at its December meeting, lifting the target range to 4.25%-4.50%.