USBank - 2023 investment outlook: A tale of two halves

The 2023 investment outlook is expected to be a tale of two halves, with a choppy start to the year and a more favorable environment later on. In the first half of the year, the focus will be on the U.S. Federal Reserve and other central banks' policy decisions. Investors will be closely watching to see how strict the central banks will be in their monetary policy, given recent interest rate hikes. The central banks are facing a difficult balancing act, as inflationary pressures remain high, but economic growth is slowing down, which raises the risk of further borrowing in a weakening economy.