Market Updates

Weekly Economic Update: December 12, 2022

• Yields finished the week higher with the two-year Treasury note rising by seven basis points to 4.36% while the five-year note increased by eleven basis points to 3.77%

• The strength and endurance displayed by the consumer during this cycle has been impressive, however with personal savings falling to a near historic low of 2.3% and simultaneously credit card balances have increased by 15% over the past year, it is only natural to question how much the consumer has left in the tank

• Market participants await the final FOMC meeting of the year concluding Wednesday where it is all but certain the committee will raise the Fed funds rate by 50 basis points in the ongoing fight against inflation

• With a broad swath of data released since the last Fed meeting, investors will focus their attention on the committee’s Summary of Economic Projections where it is likely that terminal Fed funds and possibly unemployment, are revised higher

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