The hot inflation report for September has bumped Fed Funds Futures estimates to an expectation of 0.75% interest rate increases at both the November and December meeting, but Professor Jeremy Siegel believes that the Fed is incorrectly measuring current inflation indicators.
Another month, another strong jobs report all but cemented in the probability for aggressive interest rate hikes through the end of the year for investors and markets on Friday.
Cleveland Federal Reserve President Loretta Mester, a voting member of the Federal Open Market Committee that votes on interest rate policy, said in a speech Wednesday that she anticipates benchmark fed funds rates will need to be greater than 4% with zero rate cuts through 2023 minimum.
July was the first month of the second half of 2022 and it was business as usual for the year, with continued market volatility caused by persistently high inflation, aggressive Federal Reserve interest rate hikes, quantitative tightening, and weakened investor sentiment.
Fixed income funds have seen a resurgence in recent months as advisors and investors look to pivot their portfolios in a time of rising interest rates by the Federal Reserve.