Insights

Fed Chair Powell made the case for another quarter-point hike amid the banking turmoil.

Investors have begrudgingly capitulated to a still-hawkish Fed.

The market is dismissing the Fed's determination to defeat inflation.

Rancor aside, with ‘extraordinary measures’ the debate over the U.S. debt limit has time to be resolved.

Three things to watch in 2023.

The Fed pushes back against market expectations.

FOMC voters must stick to the data to make their next decision on rates.

Potential recession is likely to be mild.

Securities are flowing back into the marketplace.

Money market funds reflect rate hikes.

Fed Chair Powell indicates the pace of hikes is not as crucial as arriving at the right place.

Money market yields have returned to pre-GFC levels.

Use, duration and timeframe can diversify investments.

Fed projections are less useful these days.

With sharp increases in rates and projections, the Fed intends to guide the markets. 

Impacts on the liquidity markets may flow slowly.

Monetary policy works with a lag.

Fed rates expected to go longer and higher.

 Cash has become a compelling asset class.

Ways to position for the market ahead.

Next month will mark a half-year of hikes, time enough to evaluate their impact.

The Fed raises interest rates by 0.75% for the second month in a row.

The Fed’s willingness to shift on volatile data makes rate expectations difficult.

The market’s late shift in expectations gave the Fed the opportunity for a 0.75% hike.

The Fed must rely on the data and not its policy framework to curb inflation.

The Fed moves to curb inflation.

With a 50 basis-point hike, the Fed hopes to stick it to inflation. 

The Fed rate cycle and the SEC money fund reform process are ready to begin in earnest.

The Treasury yield curve isn't matching the futures market’s view of rate hikes.