INVESTMENT COMMENTARY – SECOND QUARTER, 2023
The Federal Reserve’s (Fed’s) policy to increase the federal funds rate from zero to over 5% has worked to reduce inflation. Inflation peaked at 9.1% in June of 2022. Since then, the Consumer Price Index (CPI) has declined to 4.0% year over year according to the last reading as of May. While higher rates have slowed the economy, the broader economy has not entered a recession, nor does one appear imminent due to the strong job market...