09/05/2022
This past week, we saw equity markets fall, bond yields rise, and commodities sell-off as concerns around global demand heightened once more. Markets are now forecasting a 75 basis-point (0.75%) rate hike at the September FOMC meeting and a terminal fed funds rate of close to 4.0%, with any rate cut expectations removed from mid-2023 forecasts. However, while the near-term may be volatile, we see a case for markets to stabilize heading into year-end, driven by two key factors: midterm elections and a potential Fed pause by year-end.
A summary of last week's market highlights and economic news.