Market Commentary

    ECONOMIC REVIEW1 US retail sales increased 0.4% month-over-month (MoM and only 0.5% over the last year, the lowest growth rate since May 2020 and well below the historical year-over-year (YoY) average of 4.8%. After adjusting for inflation, though, the story is far worse. Real retail sales fell 4.2% over the last year, the 6th consecutive YoY decline. The latest reading for housing starts came in at 1.401M, just above the forecast of 1.400M, and is a 2.2% increase from M

    ECONOMIC REVIEW1 Headline inflation was reported in line with consensus, rising +0.4% in April, a slight re-acceleration from March’s print. The Consumer Price Index (CPI) twelve-month comparison cooled to a +4.9% annual pace, ticking below +5.0% for the first time in two years. Core CPI, which excludes volatile energy and food categories, rose +0.4% for the month and +5.5% year over year, with the primary driver being shelter costs, the biggest services component

Market CommentaryFor the week of May 8th, 2023ECONOMIC REVIEW1 The Federal Reserve (Fed) raised short-term interest rates another quarter percentage point (0.25%) on Wednesday, continuing its monetary tightening regime widely expected by analysts and investors. The central bank’s 10th consecutive increase brings the Fed funds target range to 5.00 – 5.25%.Arguably more important was the removal of language on the Fed’s statement that previously indicated, “the committee a