Making sense of market uncertainty

The latest FOMC statement and subsequent press conference were full of references to “uncertainty”. Most notably, the FOMC statement changed the language related to the Fed’s goals being “roughly in balance” to “uncertainty around the economic outlook has increased”. 

 

 
Not only is uncertainty elevated, but also the risks to inflation, GDP growth and employment have risen in 2025, which increases the odds of stagflation ahead. 

How should investors react to the increase in policy uncertainty?
 

The full post can be found here.