Economic Commentary
Currency: The Economy’s Shock Absorber
ECONOMY & POLICY September 30, 2022 Chief Economist Eugenio J. Alemán discusses current economic conditions. When a country decides on the characteristic of its exchange rate regime (or exchange rate policy), it is deciding on the variable that will be in charge of adjusting the impact of shocks. This includes unforeseen shocks (i.e., external […]
Weekly investment strategy
MARKETS & INVESTING September 23, 2022 Review the latest Weekly Headings by CIO Larry Adam. Key Takeaways Fed completes the third consecutive 0.75% rate hike Increased probability of a recession in 2023 Recession is not expected to be severe in nature Since the August Jackson Hole Symposium, the Fed has cautioned that the tightening […]
Markets flinch at Fed’s aggressive action
MARKETS & INVESTING September 21, 2022 No interest rate cuts are in sight until 2024, according to the Fed’s new dot plot. The Fed aims to keep interest rates higher for longer. FOMC raised the federal funds rate by 75 basis points. Restrictive monetary policy may push the economy into a recession. The U.S. […]
Will the PCE deflator have the last word in August?
ECONOMY & POLICY September 16, 2022 Chief Economist Eugenio J. Alemán discusses current economic conditions. This week’s headline inflation, or headline consumer price index (CPI), number was very disappointing, but not because it was too high. It was actually very low. The reason it was disappointing was because it was not low enough. And […]