Dr. Steven Skancke and Anna Wong discuss the Fed's rate decision and economic projections. Hans Kobler explores transforming the global economy sustainably. Johannes Jutting talks about data on climate and gender equality for evidence-based policy-making.
Read more
AI Summary
AI Chapters
Episode notes
auto_awesome
Podcast summary created with Snipd AI
Quick takeaways
The Fed is expected to pause its rate hikes due to weakening economic data.
Investors may find opportunities in longer-duration bonds as interest rates decline.
Deep dives
The Fed is Expected to Pause Hiking Cycle in Upcoming Meeting
The global economy and financial markets are leading to a higher inflation and higher rates environment. However, the Fed meeting is expected to result in a hawkish pause, signaling the end of the hiking cycle. Economic data is expected to weaken enough for the Fed to halt rate hikes. Investors are currently moving towards short-term investments, but there may be opportunities in longer-duration bonds in the future.
Investors are Considering Bonds as Yields Rise
With yields on Treasury bonds rising to their highest since 2007, investors are showing interest in bonds. Short-term investments, including money market funds, are attracting the majority of flows. However, there may be opportunities for longer-duration bonds as economic data weakens and interest rates decline.
Savers Can Now Take Advantage of Higher Yields
After years of low yields, savers now have the opportunity to earn attractive interest rates. With yields on two-year Treasury bonds above 5%, conservative investors may consider short-duration bonds as a safe investment option. Additionally, investment products such as floating-rate instruments and high-yield bonds offer even higher yields, although they come with higher risk.
The Relationship Between Data, Bonds, and Climate Change
Data collection plays a crucial role in decision-making, including investment choices. With increasing focus on reducing carbon footprints and addressing climate change, companies are becoming more aggressive in their ESG efforts. This may have implications for inflation and the investment landscape in the long term, as trends such as higher energy investments and ESG factors influence markets.
Steven Skancke, Chief Economic Advisor at Keel Point and Bloomberg Economics Chief US Economist Anna Wong look ahead to Wednesday’s FOMC rate decision and the Fed's summary of economic projections. Hans Kobler, Founder and Managing Partner of Energy Impact Partners, discusses transforming the global economy towards a sustainable future. Johannes Jütting, Executive Head of the Partnership in Statistics for Development at PARIS21, talks about data related to climate, gender equality, evidence-based policy-making. And we Drive to the Close with Charles Tan, Co-CIO of Global Fixed Income at American Century Investments. Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.