The U.S. economy contracted by an annualized 1.4% in 1Q, well short of consensus expectations for a 1.0% expansion.

With 22.0% of market cap reporting, 1Q22 S&P 500 operating earnings per share (EPS) are currently tracking $51.30.

While consumer prices were certainly very hot in March (Headline CPI +1.2% m/m, +8.5% y/y), they were no worse than feared.

Food inflation is regressive since lower-income households spend more on food as a share of total spending than higher-income households…

The week in review Unemployment rate fell to 3.6% Hourly earnings: +5.6% y/y; +0.4% m/m The week ahead Durable orders Light vehicle sales Services PMI Thought of the week Asset class returns in 1Q22 were impacted by heightened geopolitical tensions, tighter monetary...

Last week, the Federal Open Market Committee (FOMC) delivered on a very well communicated 25 bps hike, raising its federal funds target range to 0.25%-0.50%.

When it comes to economic growth in the United States, the consumer is key, accounting for nearly 70%b of gross domestic product (GDP).

Following Russia’s invasion into Ukraine, markets saw a sharp sell-off in risk assets, while safe-haven assets (i.e. Treasuries, USD and gold) outperformed.

Last week’s CPI report for January came in stronger than expected, with the rate of headline inflation increasing to a 40- year high of 7.5% y/y (0.6% m/m).

Market expectations have been pulled significantly forward in recent weeks as investors gear up for a more active and hawkish Fed amidst the background of a strong U.S. economy…