June 2023 Market Insights
Published: 06/15/2023
Markets have been strong as of late amidst the release of a stronger-than- expected jobs report, as well as news that a debt ceiling agreement had passed in the Senate. The Labor Department revealed that 339,000 jobs were added to the economy, and the unemployment rate rose to 3.7%. The debt ceiling agreement suspends the debt limit until 2025 ? but restricts some government spending and ends the freeze on student loan payments. The debt ceiling is often viewed through the lens of political brinksmanship; this time, it was notably close.
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?
March 2023 Market Insights
Published: 03/31/2023
Recent economic data has been somewhat confusing and paints a mixed picture of the domestic economy. The Commerce Department reported that the U.S. economy grew, in real terms, at an annualized rate of 2.7% in the fourth quarter of 2022. That represents a deceleration from a 3.2% increase in the prior quarter (3Q). Despite this slowdown, inflation pressures remain strong. The Personal Consumption Price index, the Federal Reserve preferred inflation measurement, rose 0.6% in January (the most recent measure), which means inflation accelerated from a 0.2% increase in December. The core PCE rate, which excludes volatile food and energy, rose by 0.6% in January.
Idaho Trust Bank Welcomes Theresa Kethler
Published: 03/07/2023
Kethler brings a wealth of experience to the Personal Banking team
January 2023 Market Insights
Published: 01/31/2023
Most major global stock indices had a very difficult year in 2022. Many central banks, including the U.S. Federal Reserve Bank, lifted interest rates to combat widespread inflationary pressures. This new and more aggressive monetary policy stance negatively impacted equity markets around the globe. Moreover, the sharp increase in interest rates also hurt bond prices, resulting in abnormally high negative returns on many fixed-income securities.