Any hope that softer inflation and slower growth data would cause the Fed to pivot from its hiking schedule quickly evaporated in August. Chairman Powell reiterated the Fed’s hawkish stance and its commitment to bring down inflation above most other factors at the Jackson Hole Economic Symposium late in the month. He went so far as to indicate that some ‘pain’ might be required to accomplish its goals, suggesting that the Fed’s efforts could come at the expense of growth and employment. The Fed and many other central banks’ reaffirmed commitments to stifling inflation, even at the expense of growth, sent shivers through risk asset markets. In a not-so-quiet August, stocks and bonds fell as yields rose and volatility was heightened.

RECENT INSIGHTS

September 26, 2022

U.S. stocks fell sharply over a renewed hawkish stance from the Fed and resurfacing growth concerns. The S&P 500 Index...

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September 19, 2022

U.S. stocks declined last week after an alarming August inflation report came in above expectations and spooked investors. The S&P...

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September 12, 2022

Last week broke the U.S. equity market’s three-week losing streak with the S&P 500 Index logging a near 4% gain....

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