Morgan Stanley IM: Take a Walk on the Supply Side
Jim Caron, CIO of the Portfolio Solutions Group, shares his macro thematic views on key market drivers.26.03.2024 | 06:22 Uhr
- Based on last week’s meeting, the market read that the Fed was amenable to running the economy hotter than expected.
- But the Fed sees things differently.
- In fact the Fed believes improvements from supply side factors will allow for higher growth without the consequences of higher inflation.
- Putting it all together, the Fed seemed to signal they are going easy on inflation by keeping rate cuts intact, while expecting the economy to continue to run hot.
- Is this too good to be true? And if so, how is it possible?
- The answer is supply side economics, which we discuss in the audiocast.
See below for important disclosures.