Tag: Interest Rates

Despite the downward pressure on inflation, supply-side dynamics and numbers do not suggest the underlying inflation rate is near (or approaching) the Fed’s target. Thus the Fed should not have a shocked face each month when the underlying market data exhibits something other than a perfectly normalizing market … despite our deepest desire to see one…

To think many people predicted 2021 couldn’t get any worse than 2020. Little did they know that 2021 would bring delta, omicron, and inflation with a lot of messiness in-between. The result is 2022 will be volatile with a covid overhang and inflation coupled with aggressive interest rate hikes (by the U.S. Federal Reserve and other similar authorities across the globe) to combat the inflation – as a result, 2022 may present more distress than 2021. These are the markets distressed investors will, as a result, be watching in 2022.