2022 was a tough year for financial markets. Both stocks and bonds saw double-digit losses. Surging inflation forced the Federal Reserve to aggressively raise interest rates.
2022 has been a year of change and surprises. Soaring inflation, war in Ukraine, and the rapid rise in interest rates were not on many people’s radars a year ago.
Our 2022 outlook called for a more challenging year, noting Fed policy and inflation were the most likely factors to disrupt the relative calm of 2021.
The Federal Reserve has a big challenge: Tame a surge in inflation that reached levels not seen in four decades without pushing the economy into recession.
While the world remained tense over the ongoing pandemic, the stock market did not skip a beat in 2021.
In the aftermath of the pandemic, both the economy and financial markets continue to strengthen.