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Federal Reserve <br />Source: Federal Reserve Source: Bloomberg <br />0 <br />1,000,000 <br />2,000,000 <br />3,000,000 <br />4,000,000 <br />5,000,000 <br />6,000,000 <br />7,000,000 <br />8,000,000 <br />9,000,000 <br />10,000,000 <br />Federal Reserve Balance Sheet Assets <br />Recession <br />In$ millionsAs expected at the November meeting,the Federal Open Market Committee voted unanimously to leave the Federal Funds rate <br />unchanged at a target range of 5.25 -5.50%.Market participants interpreted the FOMC statement as somewhat dovish,with the formal <br />statement noting “tighter financial and credit conditions for households and businesses are likely to weigh on economic activity,hiring, <br />and inflation.”During the press conference concluding the meeting, Federal Reserve Chair Jerome Powell also noted the stance of policy <br />is restrictive,the full effects of the tightening have yet to be felt,and the process of getting inflation to 2%has a long way to go.We <br />believe monetary policy needs to remain restrictive for longer to continue to put downward pressure on inflation;however we do not <br />believe further tightening will be required for the Federal Reserve to eventually achieve their 2%policy objective.Since the Federal <br />Reserve began its Quantitative Tightening campaign in June 2022,securities holdings have declined by over $1.1 trillion to approximately <br />$7.9T. <br />0.00% <br />1.00% <br />2.00% <br />3.00% <br />4.00% <br />5.00% <br />6.00% <br />Effective Federal Funds Rate <br />Recession <br />Yield (%)11