Laserfiche WebLink
Current Market ThemesSource: Details on market themes and economic indicators provided throughout the body of the presentation. Bloomberg Finance L.P., as of March 31, 2026.▸Geopolitics has overtaken U.S. macro fundamentals as the market’s primary focus▹Conflict in Iran has increased near-term inflation risks due to higher commodity prices▹Unemployment rate remains stable with net new job creation near zero▹Consumer spending and business investment continue to support growth, though momentumis slowing▸The Federal Reserve paused during both meetings in Q1, keeping rates at 3.50-3.75%▹The median “dot plot” projection continues to show one 25 basis point cut in 2026, thoughindividual projections showed less easing▹Fed Chair Powell acknowledged the path forward is complicated by geopolitical uncertainty,making it more difficult for the Fed to balance its dual mandate▸Rising front-end yields unwound the inversion in the Treasury curve▹Rate cut expectations were pushed further out, lifting front-end yields▹Escalating Middle East conflict drove a spike in volatility▹Credit spreads widened from historically tight levels amid heavy supply and geopoliticalpressureCity of San LeandroFor the Quarter Ended March 31, 2026Market UpdatePFM Asset Management | pfmam.com3Resolution No. 2026-064Page 3 of 60