With Federal Reserve officials resolute on taking aggressive action to douse generation-high inflation, even if it means derailing growth, strategists caution that markets are setting themselves up for big disappointment.
“I find it difficult to agree with a lower recession probability, but it is summer, event risk is low and carry is a desirable attribute,” said Peter Chatwell, head of global macro strategies trading at Mizuho International Plc. “I expect a different market psyche to materialize come September.”
This article was provided by Bloomberg News.