August 21st Weekly Economic Update

Don Clark, CFP®, MBA |

Markets last week overall had a bearish tone, but the ultimate reality is Wall Street and Retail Investors are torn on how to interpret the data that we are seeing. Conversations on the persistence of inflation are split, figuring out when the Fed will stop hiking interest rates, and in turn when they will start to decrease rates, are at a stalemate. Economic Confidence Indices are at 2-year lows yet Industrial Production and Housing Start data has shown very solid growth. Investors need to keep an eye on next week’s Jackson Hole event as global policy makers focus on “Structural Shifts in the Global Economy.” One debate will likely be over the persistence of higher inflation. The other hot topic will likely include a potential downshift in long-run growth amid an aging population. Treasury yields are hitting new highs as investors reset expectations about long-term inflation.