• U.S. equity markets rallied in the fourth quarter, rising 7.2% (Russell 3000) on moderating inflation. The Consumer Price Index (CPI) peaked in June and has seen steady improvement since.
  • International equities rose to a greater extent, posting a 14.3% gain over the quarter (MSCI ACWI ex U.S.).
  • The broad U.S. fixed income market showed some improvement, up 1.9% (Bloomberg Barclays Aggregate).
  • Despite cooling economic growth, the U.S. labor market remained tight during the quarter with unemployment at 3.5% in December.
  • The Federal Reserve raised interest rates 125 basis points during the fourth quarter. Additionally, the Fed expects further rate hikes in 2023 to combat inflation.
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