Investments

Another year has passed since the Federal Reserve began their monetary tightening campaign to slow the rapid rise of inflation. While inflation has moderated significantly over this time, economic activity has remained surprisingly resilient. A “Soft Landing” seemed far fetched in 2022 with inflation peaking over 9%, but the likelihood of a normalization of the rate environment without the need for a recession has steadily grown over time. As shown below, outside of a soft start to 2022, GDP growth has persistently been above long-term averages.