2022 was a year where extreme macroeconomic and geopolitical events shaped market behavior. The US Consumer Price Index (“CPI”) peaked at 9.1%, the highest level in over 40 years. The subsequent policy response saw the US Federal Reserve (“Fed”) deliver 4.25% of rate hikes across only seven meetings. This was the fastest cycle of rate hikes since the early 1980s, a period of stubborn inflation and aggressive policy action that ultimately ended in a recession. As we begin 2023, there’s a greater level of clarity around some of the questions that have driven markets over the last year. Recent inflationary data shows ... (full story)