Heading into the final quarter of 2023, investors must closely monitor the expected path of interest rates, inflation, and the potential for a recession or soft landing.

The two most significant concerns for the market remain unresolved through the 3rd quarter: how much longer inflation will remain above the Fed’s 2% target and when or if a recession will occur. While many economists and investors believed a soft landing was probably the case mid-summer, the last quarter changed many assumptions. Federal Reserve members suggested more hikes may be necessary and equity and bond markets falling in tandem.

By Rob Gee, CFA
Senior Investment Analyst
Freedom Investment Management, Inc.