Covid-related labor imbalances complicate Fed’s inflation fight
Demographic shifts and labor imbalances might have disturbed consumption-saving decisions that impact inflation.
Author: Putnam Fixed Income Team
Cracks emerge in Europe’s resilience
Recent economic data and the outlook for energy supplies are casting doubt on whether Europe has the resilience to withstand a recession.
U.S. recession ifs and whens
The U.S. will likely avoid a recession in 2022, in our view. That risk rises next year as the Fed raises rates and China decelerates.
U.S. households and asset prices are at tipping point as Fed lifts rates
In a supply-constrained world, reducing asset prices may be the only way for central banks to bring demand and inflation lower.
China sets ambitious growth target despite new lockdowns
China boosts fiscal spending to support its growth target in 2022 amid lockdowns in Shanghai and other cities.
Russia-Ukraine War could slow global growth
The war and widespread sanctions will likely have a knock-on effect on economic growth, inflation, interest-rate policies, and the future of renewable energy.
Emerging markets walk a fine line
Emerging market assets — especially currencies and bonds — have proved to be resilient amid the Russia-Ukraine conflict, rising interest rates and Omicron.
Precautionary stockpiling and its impact on growth
Companies are buying raw and intermediate goods at a record pace, which will influence economic growth in 2022.
How could the yield curve impact risk assets in 2022?
The Fed’s policy changes will have implications for the U.S. Treasury market and other financial assets.