May 16, 2022Topics shared in this publication are:At its May 4, 2022 meeting, the Fed raised rates by 50bps as expected, bringing the target range for the federal funds rate to 0.75% to 1.00%. This was the first hike of that magnitude since May 2000.Chair Powell gave very specific forward guidance for upcoming rate hikes, saying “our expectation is, if we see what we expect to see, then we would have 50 basis point increases on the table the next two meetings.
January 28, 2022—Equity markets stumbled out of the gate in 2022 with U.S. tech-related shares hit hardest. Several factors are driving elevated volatility and investor angst, including geopolitics, disappointing earnings, and increased hawkishness from central banks. While equity market corrections can be unsettling, they can also provide opportunities for long-term investors.
Key takeaways from this publication:We expect GDP growth to moderate to 2.4% in 2022 from its rapid pace in 2021 (5.7%). However, a downside scenario where oil prices remain elevated at $125 per barrel (WTI) on average in 2022 would bring our forecast down to 1.8%.A tech-led business capital expenditure (capex) recovery is underway and separates the overall performance of business spending in this cycle compared with previous cycles.