Insight
Global Fixed Income Strategy - May 2023


Inflation high enough to keep Fed on guard
Earlier this year, we expected inflation to rise temporarily in the first half of the year. This was partly due to a resilient US economy that has been able to maintain steady spending power. But we expected most of the impetus to come from remaining economic imbalances, originally triggered by the pandemic. The pandemic may be over, but the aftershocks it created are still with us, and have caused persistence in inflation. We believe the factors driving recent higher inflation reports are now receding and we expect disinflation to resume this summer.