Markets Likely Pricing Fed, ECB Rate Paths Too Aggressively
Dow Jones11-06
0616 GMT - Market pricing for both the Federal Reserve and the European Central Bank is still considerably more hawkish than Indosuez Wealth Management's central scenario. Strategist Lucas Meric and portfolio manager Alexander Bell forecast stable growth and gradually normalizing inflation to constrain central bank tightening. "Nonetheless, it might take a while for sufficient accumulation of benign underlying inflation and growth data for this scenario to materialize, keeping bond markets volatile in the meantime," they say. Money markets are pricing in approximately 1.5 Fed rate hikes and two ECB rate increases over the next 12 months, according to LSEG.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments