IN THIS ISSUE

• Macro Strategy — More Fed Focus on Employment Than Inflation: Despite recently returning its statement on longer-run goals to a more symmetrical balance between the two mandates, the decision to cut interest rates with inflation still well above target suggests that the Federal Reserve (Fed) is still more focused on employment than its inflation mandate.
  
  
• Market View — The Security Supercycle: Arms, Aerospace and Algorithms: Defense spending targets set higher globally for arms, rearmament and defense technology, further supports the momentum the aerospace and defense industry has seen in 2025.
  
  
• Thought of the Week — Small-caps Take the Spotlight: Small-cap strength could continue against a backdrop of lower rates and stronger earnings, among other supports.