The latest BoA Global Fund Manager Survey shows that a soft landing for the U.S. economy is the overwhelming consensus.
Fed
Chair Jerome Powell leaned into that narrative at the post-September
FOMC press conference after announcing the rate cut. He characterized
the cut as “an appropriate recalibration of our policy stance”. The
economy “has continued to expand at a solid pace”. Conditions are not
recessionary: “Growth of consumer spending has remained resilient, and
investment in equipment and intangibles has picked up from its anemic
pace last year”.
Such a scenario should be equity friendly, but presents headwinds for bond prices. What could possibly go wrong?
The full post can be found here.
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