There is no way around the fact that financial markets did NOT like the upside miss on both the CPI and PPI numbers last week, despite the protestation of economists that the numbers simply reflected the inevitable bumps in the road on the way to 2% inflation. Data being released this week will do little to quell the market’s unease over the near-term path for interest rates, and the FOMC minutes couldn’t arrive at a more interesting time. The S&P 500 returned -0.3% as rates rose in response to two sets of inflation data that surprised negatively to the upside, although small cap stocks were positive. Investors are nervous that sticky inflation will jeopardize the timing and extent of rate cuts from the Fed. Investment grade fixed income sectors had negative returns as rates rose across the curve. Rates rose across the curve as inflation data surprised negatively to the upside and traders continued to push back expectations on the timing of the first interest rate cut from the Fed. On the wealth planning front, we discuss the need for private long-term disability insurance.
Click Here to Read the February 20, 2024, Economic Commentary
Click Here to Read the February 20, 2024, Investment Commentary
Click Here to Read the February 20, 2024, Wealth Planning Commentary
