Peter Jackson / October 1st, 2022

Third Quarter 2022 North American Equity Strategy

“Don’t fight the Fed”. This phrase was coined in the 1970’s by famed investor Martin Zweig. Here we are approximately 50 years later, and we think the same quote could not be more applicable. At the September Fed press conference, Jerome Powell said that the main messaging has not changed from his speech at Jackson Hole in August 2022. Here are some quotes of what he said then:

“Today, my remarks will be shorter, my focus narrower, and my message more direct”
“Restoring price stability will likely require maintaining a restrictive policy stance for some time.”
“We will keep at it until we are confident the job is done.”
– Jerome Powell

The Fed has made its position clear. Fighting inflation with higher interest rates is a top priority and anyone who assumes otherwise may be disappointed. So…