Capital Market Outlook

IN THIS ISSUE

• Macro Strategy — Is the Fed Serious About a 2% Inflation Target?: Despite quantitative tightening by the Federal Reserve, the monetary base and bank reserves rose in recent months, retracing about half of their 2022 decline.
  
• Market View — What's Driving the Rally in Big Tech?: While we see several long-term tailwinds for big Technology, the durability of the rally is up for debate.
  
• Thought of the Week — Tactical Sympathy, Strategic Disagreement: There are reasons to believe that U.S., Europe and China diplomatic exchanges may be more tactical in nature, masking strategic disagreements.