Been Hedging Around the Pivot? Don’t Stop Now
Whatever the recessionary indicators may show, there are strong reasons against expecting an implied flurry of Fed rate cuts.
Jewelry at a Borsheims Cocktail Reception ahead of Berkshire Hathaway’s annual shareholders meeting.
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It can’t carry on like this much longer. We now know that Corporate America is in much better shape than many had thought, largely because the American consumer is also far more robust than many believed. The labor market remains obdurately healthy. And yet the confidence with which bond markets are now betting that the Federal Reserve must “pivot” (start cutting rates) and do so imminently has never been greater. This divergence has been present and growing for a while, but some resolution must now be close.