Market Review from Realm Investment Management – week ending 24th February 2023
Minutes from the most recent meeting of the Federal Reserve released early last week showed that “almost all” policymakers were in favour of slowing down the pace of rate increases and thought the 0.25% increase at the meeting was the way to go (although “a few” officials could have supported a 0.5% hike). However, on Friday the Fed’s preferred measure of inflation, the Core PCE price index (excludes food and energy) came in above expectations causing stocks to sell-off at the end of the week. The annual rate of inflation came in at 4.7%, reigniting expectations that the Fed will need to keep rates higher for longer. The yield on the US 10yr Treasury Note ended the week close to 4%, its highest level since November.
Full report:
https://realmim.com/good-news-is-bad-news-remains-a-problem/
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