Monthly Market Commentary

Economic Update   A U.S. default appears to have been averted, but obstacles remain for financial markets Market pricing for Fed interest rate policy has been volatile in 2023, and May was no different In reviewing industry data following the March bank failures,...

ECONOMIC UPDATE Financial markets are in a bit of a holding pattern, sandwiched between the recent banking upheaval and the looming debt ceiling negotiations Recent data suggest a resilient U.S. consumer and persistent inflation pressures The date at which the...

ECONOMIC UPDATE Something finally broke and not in an area that market participants were expecting Fresh regulations for the banking industry are almost certain, and we contemplate what those might look like The FOMC moved forward with a 25 basis point rate hike on...

ECONOMIC UPDATE Upside surprises for labor market and inflation data sparked a market repricing of Fed expectations in February, sending rates sharply higher over the month Heightened rate volatility on the front-end of the curve has made the job of pricing loans and...

ECONOMIC UPDATE The bond market got off to a great start in January, boosted by lower rates, tighter spreads, and reduced rate volatility Financial markets continue to fight Fed guidance by pricing for rate cuts in the second half of the year; Fed Chair Powell’s...

ECONOMIC UPDATE The calendar has thankfully turned on a dreadful year for most financial markets The Fed transitioned from a ‘transitory’ characterization of inflation risks to extreme policy tightening in 2022, including 425 basis points of rate hikes and >$400...

ECONOMIC UPDATE- While 2022 has been a year to forget, financial markets have been more optimistic about theprospect that peak inflation has been reached- Fed Chair Powell acknowledged that a slowdown in the pace of rate hikes is likely at theDecember 14 meeting, but...

ECONOMIC UPDATE The FOMC announced a fourth consecutive 75 basis point (bp) rate hike at the November 2 meeting but opened the door for slowing the pace of hikes at future meetingsThere have been positive signs of slowing demand and easing supply disruptions, but...

ECONOMIC UPDATE Rate volatility reached fresh 2022 highs in September as inflation persisted and central banks passed through significant monetary policy tighteningThe FOMC announced a third consecutive 75 basis point (bp) rate hike at the September meeting, marking...

ECONOMIC UPDATE Fed Chair Powell delivered another hawkish speech in Jackson Hole, implying a “higher for longer” mantra even as efforts to rein in inflation come with economic painAugust was another painful month in a historically bad year for fixed income investors,...