Market Updates

Weekly Economic Update: September 19, 2022

• Yields pushed higher over the week with the two-year Treasury note rising by 31 basis points to 3.87% while the five-year note increased by 24 basis points to 3.64%

• Headline CPI advanced by 0.1% for the month of August versus an expected -0.1% while core CPI doubled expectations advancing by 0.6% versus an expected 0.3%

• Investor sentiment was quick to change on the heels of the CPI report as yields surged and equities tumbled, market participants now expect the FOMC to hike the Fed funds rate by at least 75, if not 100 basis points at this week’s meeting

• The consumer is still displaying resilience as retail sales advanced by 0.3% in August however, with rate hikes still finding their way into the broader economy, consumer confidence and spending power is likely to erode into the tail end of the year and into 2023

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