Outlook – May 2022
May 13, 2022 | CC&L Investment Management
From the end of the last recession, we are inevitably moving towards the next one. The only question is when it will occur. Economic indicators suggest solid underlying conditions, and that a recession is not imminent. However, with inflation expectations hovering around concerning levels for central banks, the Fed is clearly demonstrating a willingness to forego economic growth in order to achieve price stability. While in previous circumstances, the Fed has come to the rescue when financial markets have tumbled, this assumption is likely gone for now as the Fed’s focus is clearly centered around fighting inflation. As a result, market risks lie ahead, a sentiment to which we remain attuned.