From an economic perspective, there was significant progress in 2023 toward sustainably lower inflation against the idiosyncratic volatility caused by the banking crisis, both in the U.S. and abroad. The progress in fighting inflation and the lagged impacts of an elevated policy rate, led the Fed to pause the tightening cycle after reaching the 5.25%-5.50% level. Elevated yields kept pressure on depressed market to contract ratios but also provided the spark for higher crediting rates (+50-60 basis points) in most products. As the probability of a soft landing and a goldilocks outlook increased throughout the year, the stable value industry was challenged by participant outflows that were attributed to robust equity returns.