It appears that the Fed might actually pull it off- There is increasing sentiment that we are done with rate increases, but with the economy holding strong, we may just be on the final approach to that ‘Soft Landing’ we’ve heard so much about. Persistent inflation above the 2% target will likely trend down in coming months but the prevailing thinking these days is that the higher rates are going to stick around.
What’s that mean?
It’s a great time to get into fixed income with the yields we currently enjoy. The most likely changes in the near term are a significant inflow to fixed income, into Treasuries or any other asset class, which could make rates fall and prices rise….
No one can time the markets perfectly, but I can tell with certainty that this is a GREAT time to lock in historically high yields.
Here’s the current market sentiment from the Wall Street Journal (Link)
Economists are turning optimistic on the U.S. economy. They now think it will skirt a recession, the Federal Reserve is done raising interest rates and inflation will continue to ease.
In the latest quarterly survey by The Wall Street Journal, business and academic economists lowered the probability of a recession within the next year, from 54% on average in July to a more optimistic 48%. That is the first time they have put the probability below 50% since the middle of last year.