Presented by Matt Glova and the LifeTime Asset Management team:
Weekly Market Update, December 27, 2022
The Federal Reserve’s (Fed’s) policy rate is set to end the year at 4.5 percent. Throughout 2022, the central bank hiked rates 17 times (4.25 percent of increases). U.S. Treasury yields increased, with the 2-year rising 13 bps to 4.31 percent, the 5-year growing 21 bps to 3.84 percent, and the 10-and 30-year each climbing 22 bps to 3.71 percent and 3.77 percent, respectively. Global equities were mixed in the final full week of trading, which was light.
Weekly Market Update, December 19, 2022
The Federal Reserve (Fed) increased its policy rate by 50 basis points (bps) at last week’s Federal Open Market Committee (FOMC) meeting, ending its string of four consecutive 75 bps hikes. This brings the fed funds upper target to 4.5 percent. Global equities fell last week as investors digested continued rate hikes from the FOMC.
Weekly Market Update, December 5, 2022
Federal Reserve (Fed) Chair Jerome Powell gave a speech last Wednesday in which he stated, “Monetary policy affects the economy and inflation with uncertain lags, and the full effects of our rapid tightening so far are yet to be felt. Thus, it makes sense to moderate the pace of our rate increases.” While much of his speech explained that restrictive policy may be required for some time in order to get inflation down—specifically noting high wage growth—the market latched on to his moderation comments. Equities markets continued to move higher as they also latched on to Powell’s comments for a slower pace of rate hikes.