Economic imbalances could mean deep recession or sticky inflation
May 19, 2023
A deep recession could have a significant impact on financial markets.
May 19, 2023
A deep recession could have a significant impact on financial markets.
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Even as bank lending tightens, the Fed may still need to keep rates high for longer to bring down inflation.
Given the fragilities in financial markets, the Fed will likely move cautiously in monetary tightening to fight inflation.
Our base case for our strategy remains that a recession will wipe out excess savings, and the relatively low interest-rate environment will return.
See how stable value and money market funds pursue capital preservation in DC plans.
Young businesses are a major source of employment, a key variable determining the economic cycle.
In the coming months, the Fed will not likely pivot, but pause and wait with a high level of rates for convincing signs of disinflation.
Limited labor supply, higher wages, and a high staff turnover seems to have initiated a wage-price spiral.
In our view, the best opportunities lie not at the extremes of ESG rhetoric, but at the heart of sustainability substance.