From the Desk - Economic Commentary
Brandon Casey, Member Strategies - 7/31/2026
U.S. equity markets opened higher this morning but have since turned negative in early trading. Treasury yields remain elevated following the Federal Reserve's decision earlier this week to leave rates unchanged, prompting investors to reassess the outlook for future rate cuts. All three major averages are trending towards both weekly and monthly losses.
The Employment Cost Index increased 0.9% in the second quarter of 2026, matching the pace recorded in the first quarter and indicating that labor cost growth remains elevated but stable. Wages and salaries rose 0.9% and benefit costs increased 1.0%. On a year-over-year basis, labor costs rose 3.4% with wages and salaries increasing 3.4% and benefit costs up 3.8%.
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