By: Jefferey J. Roach, Chief Economist and Lawrence Gillum, Chief Fixed Income Strategist

The Federal Reserve (Fed) is moving more cautiously in adjusting policy, and markets might have a hard time resetting expectations. Throughout the latest press conference with Fed Chair Jerome Powell, equity markets declined as investors were befuddled with the large upward revision to 2025 inflation forecasts; despite disappointing inflation projections, the “vibecession” is over as businesses and consumers have become more optimistic. We highlight pent-up demand for capital investment that could provide support in the new year.

Read the full commentary here: Weekly Market Commentary 12.23.2024