May 2023 Market Insights
Published: 05/09/2023
Despite headlines of doom and gloom during the first quarter of 2023, stock indices at home and abroad recovered from losses last year, and bond yields retreated from recent highs. The big news was, of course, bank failures and regulatory intervention. The collapse of Silicon Valley Bank was the largest bank failure since Washington Mutual in 2008. Overseas, the Swiss government orchestrated a ?rescue? acquisition of Credit Suisse, which is now part of UBS. Rising interest rates intended to tame inflation have exposed vulnerability in some bank balance sheets. The question moving forward is: how does this all change the Federal Reserve?s interest rate path?