This is a quiet week on the economic front while the financial markets continue to digest Chairman Powell’s comments after last week’s FOMC meeting and the extremely robust employment numbers released on Friday. There is considerable discussion behind the scenes as to whether the 517,000 net new jobs created in January (an astounding number) is a figure that has been distorted by the seasonal adjustment methodology of the Bureau of Labor Statistics. Global equity markets generated strong performance in January 2023. There is, however, growing divergence between the hawkish policy outlooks of central banks and the dovish outlook being priced in the markets. The policymakers insist they will “stay the course.” The markets assume they will “pause and cut.” Last week’s macro headlines were dominated by central banks as the Fed, ECB and BoE all had their latest meetings. All three central banks hiked rates in line with expectations. On the wealth planning front, many homeowners have felt a larger bite from property taxes since the Tax Cuts and Jobs Act (TCJA) became effective on Jan 1, 2018. However, there may be an opportunity to lower property taxes.
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