Morgan Stanley IM: FOMC Recap: A Hawkish Fed - Good for Inflation but Bad for Markets?
Jim Caron, Co-Lead Global Portfolio Manager and Co-Chief Investment Officer, Global Balanced Risk Control Team, shares his macro thematic views on key market drivers.21.09.2023 | 06:24 Uhr
- The Fed did not move policy rates, staying in the 5.25 - 5.50% range.
- Core inflation is still elevated and has yet to fall materially.
- The risk is that inflation becomes unanchored later, so the thought is they might was well break its back now.
- Their risk assessment might be that a recession sooner will likely be milder than one later, which they expect to be harder. We agree with this.
- The way we measure today’s policy meeting is by evaluating what they communicated about their future policy actions, discussed in this audiocast.
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