2023 Outlook

As the new year dawns, we find the global economic and investment environment surrounded by uncertainty. The worldwide surge in inflation and the efforts of global central banks to tame costs through campaigns of aggressive interest rate hikes are slowing economic activity. At the same time, elevated market anxiety continues to be the investment story as noted by highly volatile capital markets. 

Against this economic backdrop, increasing geopolitical tensions and concerns are contributing to the uncertainty. We expect our domestic trajectory will be a departure from the past decade as the Federal Reserve’s monetary policy stance is increasingly less accommodative.

Commerce Trust believes the 2023 economic picture will be defined by whether the Federal Reserve and other policymakers can continue to fight higher inflation without triggering a severe economic downturn. Our team of investment professionals provide their views and forecasts for the year throughout this commentary.