Commentary

We provide insights on key macroeconomic trends — monetary policy, labor trends and interest rate trends — that inform our investment process. 

 

Monthly Economic Model

Downward revisions to forecasts for US central bank rate cuts in 2025

Economic update

December 16, 2024 | The combination of resilient GDP growth, an uptick in inflation and uncertainties over likely public policy changes including tariffs and immigration, have triggered downward revisions to forecasts for US central bank rate cuts in 2025. 

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2024 Commentary

The US economy continues to expand at an above-trend rate

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November 12, 2024 | Economic Update | Aside from some unexpected weakness in last month’s job report, the US economy continues to expand at an above-trend rate, gradually closing in on the economic soft-landing Federal Reserve officials have sought.

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This is a pivotal moment for the central bank

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September 24, 2024 | Statement of Investment Policy | The Federal Reserve’s decision to lower its reference rate by 50 basis points represents a major recalibration of monetary policy.

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The US economy has proven to be resilient

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August 16, 2024 | Economic Update | Economic data shows the US economy continues to slowly decelerate as the restrictive Federal Reserve monetary policy of the past two years gradually gains traction.

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Inflation eased substantially last month

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July 18, 2024 | Economic Update | Incoming economic data shows that in the wake of the gradually slowing US economy inflation eased substantially last month, extending the recent downward drift in consumer price increases, setting the stage for the Federal Reserve to begin easing credit conditions by the end of this summer.

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The US economy remains resilient

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June 18, 2024 | Economic Update | Recently released economic data shows that overall, the US economy has remained resilient in the face of the Federal Reserve’s highly restrictive monetary policy, continuing to expand at a solid rate, but showing some signs of deceleration from last year’s torrid pace.

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Economic trends shaping Fed's policy outlook

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May 14, 2024 | Economic update | Economic indicators through mid-May remained surprisingly strong, delaying rate cuts. Recently released data raises the possibility that if there are additional signs of cooling, the central bank may move sooner than September to reduce its reference rate.

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