Insight

Global fixed income strategy - September 2023

Global Fixed Income Strategy - September 2023
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Soft landing on the horizon, but growth acceleration further away

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.