Quarterly Economic Report
Q3 2026
Key Takeaways
The SVB Asset Management Economic Report is a quarterly review and outlook on economic and market factors that impact global markets and business health.
01 Kevin Warsh chaired his first FOMC meeting in June 2026.
The committee held rates steady, and Warsh presented a new communication style and framework reset.
02 Inflation remained persistently elevated.
Core personal consumption expenditure (PCE) came in at 3.4% YoY in May, above the Fed’s 2% target.
03 Steady labor conditions prevailed during Q2 2026.
The unemployment rate stayed mostly flat from April to June. ranging between 4.2% and 4.3%.
Inflation remained sticky.
High energy prices, supply disruptions tied to the conflict in Iran and lingering tariff effects affected inflation.
The Fed maintained the federal funds rate in June 2026.
Kevin Warsh’s first FOMC meeting underscored the Fed’s commitment to its 2% inflation target and more direct policy approach.
"This Committee will deliver price stability."
— Kevin Warsh, Federal Reserve Chairman of the Board, June 17, 2026, Press Conference
Strength in growth-oriented sectors shaped the market.
IPOs, biotechnology and technology significantly outperformed, while broad US equities delivered solid gains.
Broad fixed income markets delivered modest returns in Q2.
Credit sectors outperformed high-quality government bonds due to resilient economic growth and strong corporate fundamentals.
Written and researched by SVB dedicated professionals.
