US Federal Reserve

The steepest rate-hiking program in history has largely done its job, but softening inflation may not translate to an immediate pivot on official rates as cautious central banks seek a comfortable buffer, says Neuberger Berman.

The crippling doom loop between the banks and the real economy we saw in 2008 is unlikely to feature in the coming recession, says Ruffer’s Jamie Dannhauser, who is more concerned about a violent liquidation in financial markets.

The US Federal Reserve may have guaranteed deposits at the failed bank, but its collapse constitutes a major scare for private equity managers with outsized technology exposure and is creating stress points in finance systems the world over.

Investors are flocking to risk stocks in the hope of an early Fed pivot following a better-than-expected US inflation report. While it is too early for a pivot, according to Atchison Consultants, the longer-term outlook for fixed income is positive.

Inflation fears are ripping through markets again with experts suggesting a correction may already be underway after the US Fed prepares to end the easy money era of the pandemic. US Federal Reserve member James Bullard spooked markets with his hawkish tightening monetary policy comments. He sees the ‘first interest rate rise as soon as…