After last week’s mostly positive US numbers for inflation (trending to 3%), economic growth (2.4% in Q2) and earnings (with an especially big exhale of relief over stabilized regional bank deposit flows), optimism over the Federal Reserve’s ability to achieve a soft landing could be found seemingly everywhere. The shift in mood was all the more remarkable given the FOMC announcement of a 25 bps increase in the Fed Funds target rate to 5.5%. One of the big drivers in market activity last week was the Federal Reserve’s decision to reignite their rate hike cycle, implementing a 25-basis point rate hike and bringing rates to their highest levels in 22 years. While the Fed remains data-dependent, investors are anticipating a 50% probability of one last rate hike. Fed Chair Jerome Powell said his staff had ditched the recession forecast it put in place in March, when banking turmoil had raised fears about a potential credit crunch. In the second quarter, U.S. GDP gained momentum, indicating a resilient economy. On the wealth planning front, we discuss what account you should use to cover your expenses from when you’re approaching retirement.