Weekly Talking Points for Financial Advisors (5/13/24)

Read the highlights of this week's commentary from Helios:

• Several Federal Reserve officials stated last week that interest rates would likely remain high due to persistent inflation. While acknowledging the economy's positive momentum, they expressed caution regarding potential economic shocks and commercial real estate risks, reinforcing the Fed's commitment to achieving the 2% inflation target.
• US consumer sentiment fell to a six-month low of 67.4 in May from 77.2 the previous month, below all economists’ forecasts. One-year inflation expectations rose to 3.5%, the highest point in six months, up from 3.2% in April. The decline in sentiment, triggered by rising concerns about inflation and high interest rates, was observed across all age, income, and education groups.
• US jobless claims rose to 231k the week ending May 4, up from 209k the previous week, signaling a possible labor market slowdown. Notably, significant increases in claims were observed in New York and California, where a minimum-wage hike may further impact unemployment rates. In addition, continuing claims rose slightly, and a report highlighted that job cuts have decreased, but hiring plans are at their lowest since 2016.

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