Capital Market Outlook

IN THIS ISSUE

• Macro Strategy — Fed Policy Not Restrictive, But More Balanced Growth Needed Longer Term: More balanced growth both here and abroad will likely become necessary to extend the expansion.
  
  
• Market View — Time to Focus on Fundamentals: The economic growth backdrop is solid, inflation is still in the low single digits, earnings are increasingly supportive, and technicals look healthy.
  
  
• Thought of the Week — U.S. Consumer Checkup: The durability of spending momentum will likely depend on healthy wage growth, low unemployment and layoffs, rising household net worth, and manageable household debt servicing levels.