Investment Updates
Slower Growth But Economic Outlook Remains Bright
Published Friday, September 8, 2023 at: 8:57 PM EDT
Growing evidence of a slowing economy and a sharp rise in the 10-year U.S. Government bond yield sent stock prices lower this past week, but no recession is on the horizon and growth prospects remained bright. Job growth slowed in July and August, and inflation is coming under control but not where the Federal Reserve would like yet. The Federal Reserve’s latest assessment of the economy, released Wednesday, was a mixed bag of good and bad news, and the stock market dropped. The yield on the U.S. 10-year Treasury note rose to 4.3% putting pressure on U.S. stocks. Higher yields make the reliable government-backed income on bonds more attractive versus stocks, which are riskier and not government-backed.
The Beige Book is a Federal Reserve publication about current economic conditions across the 12 Federal Reserve Districts. It’s based on interviews and online questionnaires completed by businesses, community organizations, economists, market experts, and other sources curated by the staff at the Fed Districts. The Beige Book is published eight times a year, about two weeks before meetings of the Federal Open Market Committee ((FOMC), which decides U.S. monetary policy. The FOMC meets next on September 19-20 and is not expected to raise the Fed funds rate because of signs that its 12 hikes in rates since March 2022 are now slowing the economy and reducing inflation to its target rate of 2% annually.
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