Please find the next blog in our monthly series that provides timely market data as well as perspectives on the current state of the economy and the global financial markets. Global Economy: The month of May brought the withdrawal of the US from the Iran Nuclear agreement, the end of the exemption on steel and aluminum tariffs for key US allies, and no noticeable progress on a revision to the North American Free Trade Agreement (NAFTA). After a series of on-again / off-again communications, the leaders of the US and North Korea now appear set to meet in Singapore on…

Please find the next blog in our monthly series that provides timely market data as well as perspectives on the current state of the economy and the global financial markets. Global Economy: Uncertainty over trade continues, with no clear direction.  There has been an extension of the exemption on aluminum and steel tariffs for “friends” until June 1st, and the future of the North American Free Trade Agreement (NAFTA) is still up in the air.  Talks continue with China, but there has been no measurable progress.  On a positive note, North Korea has shown a willingness to embrace peace, with…

Please find the next blog in our monthly series that provides timely market data as well as perspectives on the current state of the economy and the global financial markets. Global Economy: Uncertainty over trade and instability in the Trump White House were the themes of the month, causing most equity markets to move lower.  Initially focused on steel and aluminum, tariffs were then directed at Chinese imports specifically, leading to retaliatory moves by the Chinese.  President Trump’s top economic advisor resigned in March amid speculation that he was strongly against tariffs and breaking up the North American Free Trade…

As expected, the Fed increased rates by 25 bps and continues to project two additional rate increases for this year. Policy Normalization on Target: In a unanimous vote, the FOMC voted to raise the target range for the Fed Funds rate to 1.5% to 1.75%. This 25bps hike was well-telegraphed and completely expected by the market, with a recent implied probability of action of effectively 100%. Beyond rate increases, the quantitative tightening policy that began reducing the Fed’s $4.5 trillion stockpile of assets in October will increase its pace in April. Principal payments will be reinvested only to the extent…

Please find the next blog in our monthly series that provides timely market data as well as perspectives on the current state of the economy and the global financial markets. Global Economy: The ongoing growth and inflation story took center stage in February, as markets re-priced the potential for overheating.  Concerns over rising wages fueled the fire early in the month, with the January data showing average hourly wages increasing by 2.9% year-over-year. Despite the latest reading on 4Q-17 GDP being revised down slightly to 2.5%, reports on the US economy and corporate fundamentals continue to display signs of strength. …