Since March, when the US Congress began considering Kevin Warsh's appointment as Chairman of the Federal Reserve, bond yields have surged 75 basis points. Initially, financial markets were concerned about Mr. Warsh's ability to resist inevitable pressure from POTUS47. In particular, would he take a dovish approach to controlling above-target inflation. These fears intensified after … Continue reading Bond Markets: Mr. Warsh’s Education
Tag: s&p 500
Global Strategy Update: Feeling Liberated Yet?
5 September 2025 Yes, the first eight months of 2025 have been a wild ride. However, the financial market reaction has been quite predictable; collapsing after "Liberation Day", and rebounding once outcomes have proven to be less damaging than announced. As Autumn approaches, the policy horizon appears a little less eventful, although key trade talks … Continue reading Global Strategy Update: Feeling Liberated Yet?
European Markets: Intact or In Tatters?
12 May 2022 In my 2022 Strategy blog entitled "Avoiding Stagflation?" (published 1 December 2021), I suggested global financial market volatility was poised to rise, and equity and bond returns would be negative. On a relative basis, however, I made the case for an outperformance of European markets. Much has happened during the past six … Continue reading European Markets: Intact or In Tatters?
USA: Too Hot, Too Cold, or Just Right?
At the 16 March FOMC meeting, US Federal Reserve Chairman Jerome Powell emphasised the central bank's determination to lower inflation towards the 2% target. To this end, the FOMC raised the Federal Funds rate by 25bp, and Chairman Powell indicated similar rate hikes should be expected at future meetings. Further, he warned the FOMC was … Continue reading USA: Too Hot, Too Cold, or Just Right?