Welcome to the FIA News & Insights, a one-stop resource that includes insights from senior investment professionals on timely market events, their views on the economy and their respective markets. Find updates on the latest media information on Frost Investment Advisors, LLC and the most recent reprints, as well as, archival information for your reference.
Despite growing calls from politicians and economists for the Federal Reserve to pause its rate hikes, it came as no surprise that Fed officials once again unanimously stated on May 3 that they would raise interest rates by a quarter point. According to Mace McCain, president, managing director and CIO at Frost Investment Advisors, this latest hike was justified given the recent move up in PCE, inflation expectations and the employment cost index.
“Their single-minded focus on inflation comes at the expense of main street employment and small businesses. Tighter credit and higher borrowing costs will weigh heavily on economic growth, pushing us into a slowdown in late 2023 or early 2024,” added McCain.
Excerpted from GOBankingRates on May 3, 2023. To read full article, click here.
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