Allianz released its 14th edition of the “Global Wealth Report,” offering insights into the financial situations of households in nearly 60 countries. Chief Economist Ludovic Subran emphasized that inflation, not low interest rates, poses the greatest challenge to savers. In 2022, savers experienced a challenging year, marked by a global “everything slump” that led to a significant decline of -2.7% in private households’ global financial assets, the largest drop since the 2008 Global Financial Crisis.

Our forecast of another rate hike in September 2023, followed by a hold, is in line with the current expectations of most economists and market participants. The Federal Open Market Committee (FOMC) has raised interest rates four times this year in an effort to combat high inflation, and it is widely expected to raise rates again at its next meeting on September 20-21. However, there is growing uncertainty about how much further the Fed will need to go in its rate-hiking campaign.