Sticky inflation and an optimistic outlook for the economy sustain the Fed ’s hawkish stance. Rates should peak at 4.75% in Q1 2023, but we expect a first cut by the end of next year.
Edi and Etienne – whose appointments are effective as of September 1st, 2022 – will give a strategic contribution through the definition of commercial development plans and distribution strategies in a priority region such as Switzerland.
The Fed signaled yields to stay higher for longer. In this situation, the market may be tempted to price in a more severe economic slowdown.
Much of the looming growth deterioration seems already priced in fixed income. With the peak in inflation still to come and further key rate hikes still in the offing, we expect yields to trend moderately upwards again in the weeks to come.
Geopolitical tensions and rates uncertainties are unlikely to ease soon, keeping the USD bid as a safe haven.