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.
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.
4/8- 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.
4/1- Weekly Economic Highlights
This week featured a robust set of economic data supportive of a more restrictive Federal Reserve monetary policy. The U.S. economy added 431,000 jobs in March, with upward revisions from the prior months totaling 95,000.
3/25- Weekly Economic Highlights
Financial markets were mixed this week as Treasury yields increased amid ongoing developments in the Russia-Ukraine war and its impact on the global economy. The U.S. Treasury yield curve flattened as 2-year Treasury yields increased to approximately 2.30% while the 10-year Treasury yield increased to around 2.55%.
3/18- Weekly Economic Highlights
The Consumer Price Index headlined the economic data releases this week and although U.S. consumer prices were in line with expectations, inflation hit a 40-year high. The Consumer Price Index (CPI) was up 7.9% year-over-year in February, versus a 7.5% year-over-year gain in January. Core CPI (CPI less food and energy) was up 6.4% year-over-year in February, versus up 6.0% in January.
3/11- Weekly Economic Highlights
The Consumer Price Index headlined the economic data releases this week and although U.S. consumer prices were in line with expectations, inflation hit a 40-year high. The Consumer Price Index (CPI) was up 7.9% year-over-year in February, versus a 7.5% year-over-year gain in January. Core CPI (CPI less food and energy) was up 6.4% year-over-year in February, versus up 6.0% in January.
3/4- Weekly Economic Highlights
Geopolitical risk and the escalating Russia invasion of Ukraine continues to heavily influence market pricing. Financial conditions are beginning to tighten with investment grade credit spreads moving wider, elevated new issue concession in the primary market, and decreasing liquidity with wider bid/ask spreads across the fixed income universe.