Market Updates

Weekly Economic Update: September 12, 2022

• Yields increased over the week with the two-year Treasury note rising by three basis points to 3.56% while the five-year note increased by ten basis points to 3.40%

• Fed Chair Powell reaffirmed the committee’s hawkish position at the Cato Institute’s policy conference on Thursday emphasizing the effects of persistently high inflation on public perception as well as risks associated with a premature easing of policy

• Inflation appears to be moderating for goods whereas the stickier price increases for services continue to be elevated as rents have increased by an annualized 7% over the past three months

• The labor market remains strong as the economy added a more than expected 315 thousand to payrolls in August while wage pressures have not eased meaningfully, making it more difficult to tame inflation, particularly for services where labor costs are more engrained

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