Premature To Pause

November 7, 2022

Premature To Pause Photo

The bottom line from last week’s Federal Reserve (Fed) meeting and subsequent strong payroll number is that it seems premature to pause. The Fed delivered its fourth 75-basis-point hike, bringing the federal funds rate up to 4%, while nonfarm payrolls exceeded expectations and average hourly earnings accelerated from September.1 Treasury rates also moved higher over the course of the week as the curve flattened. 2

The week ahead will have a couple more meaningful economic releases, with the Consumer Price Index on Thursday and the University of Michigan Consumer Sentiment Index on Friday. 3 The market continues to look for signs of peak inflation and slowing growth, which would help feed the narrative of a Fed pivot by the spring and a soft landing in 2023.



1Source: Fox Business- Fed Hikes Interest Rates by 75 Basis Points for Fourth Straight Meeting; 11/2/22

2Source: CNBC- Bond Market; as of 11/7/22

3Source: MarketWatch- U.S. Economic Calendar; as of 11/7/22

Tags: Rate Hike | CPI | Consumer Sentiment Index | Inflation | Federal Reserve

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