Goldman Sachs The Markets
Are higher rates the new normal?
Aug 18, 2023
Portfolio manager discusses the current state of the market, the impact of higher interest rates, and the importance of monitoring consumer behavior. Concerns about China's economic downturn on global markets are also analyzed, along with the state of the US small cap business in asset management.
07:32
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Quick takeaways
- Markets are currently “priced for perfection” and potential volatility may arise due to dissent among Fed members about future interest rates.
- China's economic downturn and potential deflation could harm global markets and impact the competitiveness of US companies.
Deep dives
Fed Minutes Reveal Hawkish Tone and Potential Volatility Ahead
The recent release of the minutes from the latest Fed meeting has shown a more hawkish stance than expected. With some dissent among members about the future of interest rates, this sets the stage for potential volatility in the markets for the rest of the year. Retail sales and other economic indicators have played a role in shaping the Fed's outlook. Investors should closely monitor the evolving situation to gauge the impact on market stability.
