ECONOMIC AND MARKET OVERVIEW
OCTOBER IN REVIEW
The International Monetary Fund published their bi-annual World Economic Outlook in October. Global growth is forecast to slow from 6.0 percent in 2021 to 3.2 percent in 2022 and 2.7 percent in 2023. This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID 19 pandemic. Global inflation is forecast to rise from 4.7 percent in 2021 to 8.8 percent in 2022 but to decline to 6.5 percent in 2023 and to 4.1 percent by 2024.
The Federal Open Market Committee of the Unites States Federal Reserve decided to raise the target range for the federal funds rate to the range of 3.75% to 4% an increase of 0.75%. They anticipate that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.
