By: Jeffrey Roach, PhD, Chief Economist & Lawrence Gillum, CFA, Chief Fixed Income Strategist
Shipping disruptions in the Red Sea could temporarily impact goods prices but not at the same magnitude as during the pandemic. Tight financial conditions, slowing economic growth, and a disinflationary trend all support the Federal Reserve’s (Fed) pivot away from tightening monetary policy to easing in the new year. Despite these longer term trends, rates possibly got ahead of themselves in recent weeks, exhibiting higher volatility.
Read the full commentary here: weekly-market-commentary-01.22.2024