Happy July! The Fed’s favorite inflation measure, the Personal Consumption Expenditures (PCE) price index, came in at 2.7 percent for May. Meanwhile, consumer expectations for inflation over the next 12 months came in at 3.0 percent. While it appears inflation is behind us, the Federal Reserve fears inflation will resume a climb higher, so we are waiting a little longer. Meanwhile, 10-year treasury bonds have risen from below 4 percent at the start of the year to roughly 4.4 percent. As short-term interest rates fall, it is unlikely long-term interest rates will change much. This might be the next big hurdle for the market: realizing longer-term interest rates are not only higher for longer, but simply higher. I hope you enjoy the summer with family and friends!
All the Best, Jon Gauthier, President, GWM
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