Fixed Income Perspectives

The wealth effect will continue to support consumer spending, even as slowing wage gains and high prices weigh on low-income consumers.

As we approach the halfway point of the year, all eyes remain on Federal Reserve policy and the pace of inflation’s downward trend.

Just like we thought investors were too optimistic to start the year, we feel the outlook for monetary policy is too pessimistic now.

While the Fed wants to cut rates, an uneven decline in inflation delays action—but remember the trend matters more than the “when.”