Equity markets retreated last week following a hawkish fed statement. The FOMC indicates interest rates will remain higher for longer confirming that a new normal is in place. This normal includes high inflation and high interest rates, ?neither of which is expected to change soon . The next move for the Fed is a probable rate hike.?

Oil continues to be a threat to the market. The oil price rose to another new high, and the bulls target $100 per barrel. In this scenario, inflation will accelerate and keep the Fed?s foot on the brakes regardless of whether they hike rates again. As it is, the market expects rates to remain at or above current levels until mid 2024, which may be optimistic. OPEC and Russia have the oil market tilted in favor of higher prices.?