<img height="1" width="1" src="https://www.facebook.com/tr?id=852282609072225&amp;ev=PageView%20&amp;noscript=1">

Markets & Economic Update for September 2022: As Economy Slows, Has Inflation Peaked?

September 9, 2022
David Lundgren, CFA®
David Lundgren, CFA®

Each month, senior leaders of Hancock Whitney's Asset Management team discuss the latest news and events that impact markets and the economy.

This month: There were new signs of peaking inflation, and August is shaping up to be a second consecutive month of zero/low inflation, which will likely pull Q/Q and Y/Y trends steeply lower. Other economic data pointed to continuing economic weakness in Q322, indicating the economic disruption the Fed is promoting to restrain inflation is under way.

 

Watch and listen to the webinar:

 

 

Key Takeaways:

  • Bond prices plunged during the month as interest rates around the globe rebounded sharply higher during August. The August bond market slump was the third worst monthly decline of 2022 at -2.8% as measured by the broad Bloomberg U.S. Aggregate Bond Index.
  • The Federal Reserve’s annual conference in Jackson, WY was held on August 25-27. Chairman Powell’s statement indicated that rates will continue to rise even though there are early signs of decelerating inflation, and are likely to stay high until inflation has clearly descended back to the Fed’s 2% target range.
  • A volatile August ended with a resumption of the 2022 bear market for stocks. A positive August start was driven by hope that the Fed would be toning down its inflation fight in the face of a looming economic slowdown. However, sensing that that hope was misplaced, stocks resumed the slide begun around the turn of the year.
  • President Joe Biden signed the Inflation Reduction Act of 2022, a major taxation, spending and deficit reduction bill that advances at least some of his priorities around clean energy and climate change as well as health care affordability.
  • Looking ahead to the midterm elections, the outlook for Democrats, which had been bleak, has grown somewhat rosier in recent weeks. Many political analysts have recently flipped from favoring Republicans to control the next Senate to favoring Democrats to retain control with sentiment continuing to trend positive for Democrats. Most analysts and polls still heavily favor the GOP to gain control of the House, though the margins have declined very slightly.

 

The Hancock Whitney Asset Management team is ready to help guide your portfolio through the ongoing market uncertainty. Let us help you achieve your investment goals.

 

Talk to a Private Banker

 

The information, views, opinions, and positions expressed by the author(s), presenter(s), and/or presented in the article are those of the author or individual who made the statement and do not necessarily reflect the policies, views, opinions, and positions of Hancock Whitney Bank. Hancock Whitney makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any information presented.

This information is general in nature and is provided for educational purposes only. Information provided and statements made should not be relied on or interpreted as accounting, financial planning, investment, legal, or tax advice. Hancock Whitney Bank encourages you to consult a professional for advice applicable to your specific situation.

Hancock Whitney Bank offers investment products, which may include asset management accounts, as part of its Wealth Management Services. Hancock Whitney Bank is a wholly owned subsidiary of Hancock Whitney Corporation.

Investments and Insurance Products:

NO BANK GUARANTEE NOT A DEPOSIT MAY LOSE VALUE NOT FDIC INSURED
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY