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Flash Report August 2023

August brought back a taste of 2022 as both equities and fixed income markets fell with mixed economic data and rising interest rates. Fitch became the second rating agency to downgrade the United States credit rating (from AAA to AA+) citing a high and growing debt burden. Powell maintained his hawkish outlook in Jackson Hole although he acknowledged monetary policy works with a lag, indicating the rate hike cycle may be nearing a peak. Continued economic woes in China added downward pressure on markets.

WRITTEN BY | September 1, 2023

 

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