In a packed reporting week, the November 2022 Federal Reserve speech acknowledged lower inflation levels throughout the United States.
After a long year of rising inflationary pressures, November 2022 markets now highlight change of pace heading into 2023.
This week, the highly anticipated labor market data came out, highlighted with the surprising drop in the August 2022 unemployment rate.
In another extremely volatile week, the latest news saw mortgage rates hit 2007 highs as the UK passed new tax cuts.
Taking a look back at August 2022 mortgage rates, mortgage-backed securities continued to soar amongst stubbornly high inflation levels.
While this week’s Jackson Hole Economic Symposium failed to cause much reaction, mortgage rates ended the week a little higher. However, Federal Reserve Chair Jerome Powell’s speak did allude to greater inflation consequences. Jackson Hole Economic Symposium Alludes to “Some Pain” In a highly anticipated speech from the Jackson Hole Economic Symposium, Fed Chair Powell alluded to the inflation outlook. In his address, Powell mentioned that the consequences of not aggressively fighting inflation produce a worse scenario than the effects of tightening monetary policy. Overall, he said that tightening monetary policy includes "some pain" for households and businesses. Powell repeated that future decisions depend on incoming economic data. Despite that announcement, he chose not to include specific guidance. Investors remain divided about whether the Fed raises the federal funds rate by 50 or 75 basis points at the September 21st meeting. Core PCE Climbs but Falls Below Consensus Forecast As the Jackson Hole Economic Symposium pointed towards inflation, core PCE climbed slightly year-over-year. In July 2022, core PCE increased 4.6% from a year ago. Not only did this fall below the consensus forecast, core PCE declined from a peak of 5.3% in February. As the Federal Reserve’s preferred inflation indicator, [...]
Although this week’s Federal Reserve meeting revealed no surprises, the Fed launched its 75-basis point increase. Notably, this federal funds rate hike matches the largest since 1994.
In a relatively quiet week for mortgage markets, investors saw steady job gains in the leisure and hospitality sectors.
Although the latest core PCE met expectations, investors grow increasingly concerned with slowing global economic growth.