Weekly Economic Update: July 24, 2023
• Yields moved higher over the week with the two-year Treasury note rising by eleven basis points to 4.86% while the five-year note increased by five basis points to 4.10%.
• Retail sales advanced by a less than expected 0.2% in June, the lowest reading in three months as consumers appeared to cut down on spending, however, the previous month was revised up to a robust 0.5%.
• The control group of retail sales, which feeds directly into GDP, advanced by a more than expected 0.6% in June perhaps supporting another above trend GDP growth reading for the previous quarter as the consumer, and the economy remain resilient.
• The Fed meets tomorrow and Wednesday where it is expected they will raise the fed funds rate by another 25 basis points to an upper bound 5.50% and with disinflation currently underway, many believe this could be the last rate hike of the cycle.