- Equities and other risk assets were in the red in June, as talk of the Fed tapering its asset purchase plan and a slowdown in China provoked fear in investors and contributed to a surge in volatility.
- Interest rates rose sharply on this “tapering talk,” resulting in negative returns for bonds during the quarter.
- The economy grew at a 1.8% annualized pace in the first quarter, according to the final estimate, slower than initially thought. Expectations point to a similar or modestly slower pace of growth in the second quarter.
- Inflationary pressures remained in check in May and joblessness remains elevated, providing the Fed ample room to maintain its accommodative stance