July 2023 FOMC: Another 25bps

The Fed raised rates for the 11th time in 16 months, bumping rates +25bp to 5.25%-5.5% at today’s FOMC meeting. This matched the market consensus and puts short-term rates at a 22-year high (last seen January 2001).  The Fed kept the statement the same in regard to...

Rearview to Windshield, July 2023

June ‘23 Market Recap: The banking fears of Q1 faded into an all-out Artificial Intelligence (“AI”) FOMO trade in Q2, as the S&P 500 returned 8.74%. Outside of AI, this quarter’s narrative was “Immaculate Disinflation”, which embodies falling inflation and stable...

May 2023 FOMC: (Still) Higher for Longer

The Fed delivered a 25bps hike as was broadly expected by markets. They made a modification in their statement omitting the wording regarding the necessity of further rate hikes. To us, this indicates a sort of “hawkish” pause in policy here at the 5-5.25%...

Post-FOMC, February 2023

As expected, the Fed hiked 25bps to the 4.5%-4.75% range, the eighth hike in a year.  The markets experienced a pretty large rally following the FOMC meeting & presser. Stocks moved higher and yields lower as Powell continued to believe a soft landing was very...

The Yield Curve and Its Impact

The Federal Open Market Committee (FOMC) has the ability to set interest rates through the Fed Funds rate – the overnight lending rate among US banks. Banks are required to retain a certain amount in deposits as capital to help guarantee their solvency. Bank deposits...