J.P. Morgan’s Market Movers

Last week the Federal Reserve announced how the progression of vaccine distribution will improve effects of the public health crisis on the economy, but risks to the future outlook remain. Furthermore, the Federal Reserve officials continue to keep interest rates at near zero, but expect to raise rates in 2023 as inflation continues to increase. However while inflation is increasing, we continue to believe the current period of the ongoing spike is transitory as travel restrictions continue to lift and increase transportation prices. Although many investors eagerly anticipated news on tapering, the Federal Reserve reiterated the central bank will not start tapering and continue to purchase $120 billion a month in U.S. Treasuries and mortgage-backed securities. While word did not come last week, we still believe the Federal Reserve will begin tapering discussions this summer and implement it in the early next year. In regard to growth versus value, our position remains to continue to focus on both value and growth to achieve balanced exposure as we progress through the economic recovery.