Weekly Investment Strategy

Review the latest Weekly Headings by CIO Larry Adam.

Key Takeaways

  • The Fed’s June meeting could be a market-moving event
  • Growth forecasts decline as rate hike expectations rise
  • Market’s view of Fed action may be too aggressive

All eyes are on the Fed! With the May inflation reading now in hand, investors are looking ahead to next week’s Federal Open Market Committee meeting (June 14-15) where Chairman Powell will provide the latest bird’s eye view of the US economy. Investors’ belief in the Fed’s aptitude for raising interest rates without causing a recession has been in flux, so next week’s meeting could potentially be a market moving event. This is especially true given the release of the Fed’s updated economic projections and dot plot in addition to the Chairman’s press conference. The financial markets may want an answer on whether the Fed can engineer a soft landing in the ‘blink of an eye,’ but unfortunately it will take some time to see how quickly interest rate hikes will impact the economy. In the meantime, we’re maintaining our faith in the Fed and sharing our insights of what may come from the June meeting.