
Fixed Income Global Fixed Income Strategy - August 2023
After abruptly ending its zero-COVID policy, China bounced back strongly in the first quarter.
The US Federal Reserve (Fed) chose not to raise interest rates at its most recent meeting, but it adopted a relatively hawkish posture concerning future adjustments. This hawkish sentiment was exemplified by the Summary of Economic Projections (SEP), which pointed to a potential rate hike by the end of 2023. Yet, a closer examination of the Fed’s statements reveals a commitment to a data-dependent approach going forward. Notably, the range of internal Fed estimates for future interest rates has broadened, suggesting a greater dispersion in views among the Federal Open Market Committee. This growing divergence underscores the heightened importance of upcoming economic data in shaping market expectations.
After abruptly ending its zero-COVID policy, China bounced back strongly in the first quarter.
As the market patiently waits for global central banks to wind down their rate hiking cycles, we wonder, is the journey really this long, or have we gotten lost along the way?
Twice a year, investors from across Invesco Fixed Income’s global platform gather at the IFI Global Investors’ Summit.