Housing has weakened, but the Fed is unlikely to alter its rate tightening path

Highlights from the Monthly Review for August 2022:

The economy continues to show signs of slowing with the housing market, which is on the front lines as the Fed raises interest rates, leading the downtrend. Demand remains strong in many industries, however, with payroll gains still far above the long-run average and inflation not in the same ballpark as the Fed’s 2.0 percent goal — likely prompting another outsized rate hike by the Fed this month.

Key Takeaways:

Economic Review

• Housing market has weakened, but the Fed is unlikely to alter its rate tightening path (pg 4)

Financial Markets

• The market rally falters (pg 5)

The Outlook

• History says to expect the unexpected (pg 6)

Rates continue to climb as the economy shows some slowing: View the full report to learn more.