Engineering a soft economic landing will be difficult | Ausbiz

Oreana Financial Services Isaac Poole returns to talk Fed rate hike plans, hard-landing risks, the carnage in the bond market and whether value is finally emerging in the fixed income space. He thinks it’s clear the Fed wants to front load hikes, suggesting that probably means we’ll see 100 basis points of hikes over the next 2-3 meetings. “That may give them a chance to pause but that will be dependent on data,” Isaac says. In his opinion, inflation is likely to slow from here, helping to mitigate cost of living pressures on households. “Higher inflation and central bank hikes will slow the global economy although we are still expecting growth over 2022 and 2023,” he says. “A recession is not on the horizon yet.” However, Isaac believes significant downside risks will emerge if the Fed hikes too quickly, suggesting a more gradual hiking cycle remains preferable as soft economic landings – as the Fed is attempting to engineer – are notoriously difficult to pull off. (Source: Ausbiz) Click here to watch the interview.


Read our latest insights to help you make better investment decisions and build stronger portfolios.

A Licensed Financial Firm