Highlight of the Week
All Eyes on Jackson Hole Fed Symposium
- As Fed officials meet for their annual Symposium in Jackson Hole, the prevailing sentiment is that they will maintain the guidance of rates being higher for longer.
- As they continue to push inflation down to the 2% target, the market sentiment has shifted from the possibility of rate cuts in the first half of 2024 to now the second half of 2024.
- Meanwhile 5-year and 10-year Treasuries have hit some of the highest yields in 15 years which has led to even higher rates on auto loans and mortgages. Meanwhile delinquencies have continued to rise Q-o-Q for the major categories and credit cards have amassed a debt balance of over $1 trillion.
- The commercial real estate sector will also be looking to see what comes of the Fed Symposium and the September FOMC meeting as rising refinancing costs plague troubled asset valuations.