- The quarter-point increase in the federal funds rate today was not, in itself, very interesting for markets, as Chair Jerome Powell already pre-committed this decision in his testimony to Congress a few weeks ago.
- Meanwhile, inflation has become more concerning in recent months. Wage inflation has jumped, with the Atlanta Fed Wage Tracker shooting up to 6.5% in February.
- We continue to focus primarily on strategic asset allocation and the security selection from our underlying money managers as the primary drivers of risk and return in portfolios.
For further details see:
Fed Highlights Concerns Over Inflation As Rate-Hiking Cycle Begins