Insights

Yields continued to rise in October as inflationary concerns persisted and political developments overseas leaked into U.S. markets. The 10-year U.S. Treasury note yield reached the highest levels in over a decade, touching 4.24% before closing the month at 4.07%. Real yields moderated as inflation protected securities (TIPS) outperformed nominal Treasuries.

BOSTON, MA, November 2, 2022 -- The Federal Open Market Committee (FOMC) met today to assess the state of the U.S. economy and monetary policy.

As countries struggle to source reliable energy for their people and their economies, the tension between energy security and climate change mitigation continues to grow. The discussion will heat up again in November as sovereign leaders gather for COP27, the United Nation’s annual conference on climate change. During last year’s COP26, countries made significant commitments to managing greenhouse gas (GHG) emissions in line with the Paris Agreement’s target of limiting global temperature rise to 2°C. However, the events of this year have delayed, and in some cases reversed, climate progress in order to address near-term energy shortfalls.
 

As countries struggle to source reliable energy for their people and their economies, the tension between energy security and climate change mitigation continues to grow. The discussion will heat up again in November as sovereign leaders gather for COP27, the United Nation’s annual conference on climate change. 

As countries struggle to source reliable energy for their people and their economies, the tension between energy security and climate change mitigation continues to grow. The discussion will heat up again in November as sovereign leaders gather for COP27, the United Nation’s annual conference on climate change. 

The policymaking cohort of the UN, the General Assembly, convened in New York last month to discuss the ongoing effects of the economic, environmental, and geopolitical crises that the world is currently enduring. 

A writer from 19th century France once noted that the more things change, the more they stay the same. This phrase could well apply to the market dynamics of the third quarter of 2022. Extreme volatility, a strengthening U.S. dollar, negative equity returns, and rising bond yields, all present throughout 2022, continued to saturate the investment landscape. 

The Federal Open Market Committee (FOMC) met on September 21, 2022, for the sixth time this year to assess the state of the U.S. economy and monetary policy.

Rate volatility picked up following a surprisingly strong July employment report and was further supported by Fed speakers working to move market participants from a “dovish pivot” toward a “higher for longer” theme for federal funds. Chair Powell’s short speech at Jackson Hole reinforced the committee’s commitment to squash inflation with expectations of a sustained period of higher overnight rates.

The Inflation Reduction Act of 2022 represents a major development in U.S. climate and industrial policy. This month, we outline the pros and cons of the bill as well as investment implications across a wide range of industries. Additionally, the labor market continues to be tight while employers are being pressed to cut costs due to inflation and a slower growth outlook. We share how human capital management can be a differentiator for employers in this challenging environment.