Despite the strength in the labor market, economic uncertainty is on the rise and the economy is slowing due to inflation and ongoing geopolitical tensions. Inflationary pressures remain high with the all-item consumer price index (CPI) increasing 8.5% year-over-year in May 2022. Inflation has eaten into consumers’ pandemic savings as the costs of essentials such as food, energy, and rent have outpaced wage and income growth. Inflationary pressures will likely remain high throughout the year due to the impact of the geopolitical conflict on food and energy prices. The Federal Reserve has increased the target fed funds rate by 1.5
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