Monthly Economic Summary (July)

Inflation has now well surpassed the Federal Reserve’s (FOMC) target, as the core PCE accelerated to +3.5% year-over-year.  The FOMC recognizes the need to reduce accommodation in the quarters ahead and we believe it will start tapering the pace of its purchases in December. As always, if you have any questions or want to discuss the economy or markets more in-depth do not hesitate to give us a call!

Sources:

1. Sources: J.P. Morgan Asset Management – Economic Update; Bureau of Economic Analysis (www.bea.gov); Bureau of Labor Statistics (www.bls.gov); Federal Open Market Committee (www.federalreserve.gov)
2. Indices:
   • The Barclays Aggregate Bond Index is a broad-based index used as a proxy for the U.S. bond market. Total return quoted.
   • The S&P 500 is designed to be a leading indicator of U.S. equities and is commonly used as a proxy for the U.S. stock market. Price return quoted.
   • The MSCI ACWI ex-US Index captures large and mid-cap representation across 22 of 23 developed market countries (excluding the U.S.) and 27 emerging market countries.  The index covers approximately 85% of the global equity opportunity set outside the U.S. Price return quoted.
   • The MSCI Emerging Markets Index captures large and mid-cap segments in 26 emerging markets. Price return quoted (USD).

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