ISM data is out. New orders bounce up a touch, and prices grind higher. Hence the Fed walks back the recent “we could pause” type commentary. That was Bostic (behind the “pause” framing) and Waller has since been out with the more generally representative hawkish messaging, a message that we think is consistent with the data.
No change to our positioning. The economy is hot, arguably too hot, hence the rates go up, and the fine “don’t crunch the economy” balance the Fed needs to straddle. We are overweight rate sensitives in our direct equity portfolios.
For now, the market positioning seems consistent with the “soft-ish” landing.
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