Embracing challenges and creating change are important principles for personal and professional growth. When faced with challenges, it is natural to feel overwhelmed or uncertain, but taking on challenges can help us develop new skills, gain new perspectives, and expand our comfort zones. Embracing challenges allows us to grow and learn in ways that we may not have thought possible.
Creating change is equally important. Whether it’s making changes in your personal life or in your career, taking the initiative to create change can help you reach your goals and bring new opportunities. It requires courage, creativity, and determination, but the rewards can be significant.
To embrace challenges and create change, it is important to have a growth mindset and a willingness to take risks. This requires being open to new experiences, being adaptable, and having a positive attitude. It’s also helpful to have a support system of friends, family, or colleagues who can offer encouragement and guidance.
In addition, it’s important to have a clear vision of what you want to achieve and to create a plan for how you will achieve it. This can involve setting specific, measurable goals and taking action steps to reach them.
Ultimately, embracing challenges and creating change is about embracing the unknown and being willing to step outside of your comfort zone. By doing so, you can unlock your full potential and achieve greater success in life.
The full statement from the FOMC February 2023 interest rate decision meeting:
Recent indicators point to modest growth in spending and production. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation has eased somewhat but remains elevated.
Russia’s war against Ukraine is causing tremendous human and economic hardship and is contributing to elevated global uncertainty. The Committee is highly attentive to inflation risks.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 4-1/2 to 4-3/4 percent. The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. In determining the extent of future increases in the target range, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lael Brainard; Lisa D. Cook; Austan D. Goolsbee; Patrick Harker; Philip N. Jefferson; Neel Kashkari; Lorie K. Logan; and Christopher J. Waller.
We are in a new world shaped by supply. Major spending shifts and production constraints are driving inflation.
Constraints are rooted in the pandemic and have been exacerbated by the energy shock and China’s lockdowns.
We are in a new macro regime where central banks are causing recessions rather than coming to the rescue. That is clear in the rate path of major central banks set to overtighten policy as they battle inflation. We think they will eventually pause but not cut rates when confronted with the damage of sharp rate hikes – that could be the reality of recession or the appearance of financial cracks, as seen in the UK.
The Federal Reserve … signaled it would have to take rates higher than it originally planned, even if at a slower pace.
The Bank of England has acknowledged some recession is necessary to get inflation down, yet like other central banks, it is failing to acknowledge the scale of the recession needed to get it all the way down to target.
The ECB continues to normalize monetary policy, but a change in tone suggests it could be poised to slow the pace of hikes. We think the ECB is still raising rates into a recession triggered by the energy shock and its hikes.
Investment implication: We are tactically underweight DM equities after having further trimmed risk.
Chinese economic activity data for October 2022. Both sales and output missed expectations.
October retail sales fell y/y. They last fell back in May when Shanghai was locked down. Rolling COVID restrictions and a collapsing property market were negative influences on this data for October. Yesterday I posted on moves from Chinese authorities to address COVID and property woes and boost the economy
The International Monetary Fund has written in a piece prepared for the summit of G20 leaders in Indonesia,
recent high-frequency indicators “confirm that the outlook is gloomier,” particularly in Europe
It said recent purchasing manager indices that gauge manufacturing and services activity signaled weakness in most Group of 20 major economies, with economic activity set to contract while inflation remained stubbornly high
tightening monetary policy
triggered by persistently high and broad-based inflation
weak growth momentum in China
ongoing supply disruptions and food insecurity caused by Russia’s invasion of Ukraine