Apple marketed “The future of computing is now” tagline to consumers when it recently launched its Vision Pro virtual reality headset. This technological marvel allows users to simultaneously experience “reality” and “virtual” reality. The second quarter of 2023 presented its fair share of reality and “altered” reality. The aftermath of the March bank failures flowed into Q2 with the demise of First Republic and Credit Suisse. We also experienced the political tug of war in Washington regarding the nation’s debt ceiling. The “Will they?” or “Won’t they?” default scenarios made headline news for a while and caused indigestion.
Meanwhile the Fed maintained overnight rates at the June meeting and left the door open for future increases. With inflation figures, housing starts, consumer sentiment, and payroll data all surprising to the upside, the market is pricing in an additional hike at the July meeting.
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