Fed Seen Delaying Rate Cuts and Gold Surges to Record
Apr 2, 2024
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Chief Fixed Income Strategist at Charles Schwab discusses fixed income opportunities and positioning for a correction. Professor of Economic Policy at Harvard talks about balance of worry in jobs report and potential recession. Co-founder of Merk Investments shares insights on how high gold prices can go.
The Fed is expected to delay rate cuts amid economic uncertainties, while gold prices surge to record highs driven by geopolitical tensions and fiscal policies.
Deep dives
Economic Insights: Soft Landing and Market Trends
The podcast episode delves into the current economic landscape, highlighting a concept of a 'soft landing' in the economy. The speaker, Kathy Jones, Chief Fixed Income Strategist at Charles Schwab, discusses the balance between strong economic growth and decreasing inflation. With the 10-year Treasury yield at 4.35% and positive economic indicators, the market faces uncertainties about the Federal Reserve's next steps in response to the economic conditions.
Investment Strategies: High Yield Markets and Bond Opportunities
The podcast explores the performance of the high yield market, contrary to expectations, showing strength and resilience. Kathy Jones explains how high yield issuers strategically managed their debt amidst economic challenges. In addition, she recommends investment opportunities in investment grade corporate bonds for taxable markets and municipal bonds for high tax brackets, emphasizing the benefits of diversified bond investments.
Gold Market Dynamics and Economic Outlook
A discussion on the gold market sheds light on factors influencing gold prices. The podcast suggests that uncertainties in fiscal and monetary policies, coupled with geopolitical tensions, drive interest in gold as a safe haven asset. The shifting correlations and dynamics in the gold market, including the impact of real yields, highlight the complexities of predicting gold price movements amidst evolving economic conditions and investor preferences.
Watch Tom and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Surveillance hosted by Tom Keene and Paul Sweeney April 2nd, 2024 Featuring:
Kathy Jones, Chief Fixed Income Strategist at Charles Schwab, discusses fixed income opportunities in 2024 and positioning for a correction
Jason Furman, Professor of the Practice of Economic Policy at Harvard, on the "balance of worry" in the Feb jobs report, and why we could be tilting from inflation to recession
Axel Merk, co-founder and CIO at Merk Investments, on how high gold can go
Bloomberg's Lisa Mateo with her Newspaper Headlines