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Executive Summary Inflation Surprise Reinforces Gridlock And Fiscal Drag  A US recession is increasingly likely as the Fed will have to hike rates more aggressively in the short run to contain inflation. Recession would…
Executive Summary This report looks back at seven recent Fed tightening cycles and summarizes evidence concerning how the US Treasury curve behaves relative to the length and magnitude of the tightening cycle. We document a few…
Special Report Executive Summary Central banks are aggressively tightening policy around the world. Their ability to rein in inflation without causing a recession depends upon the level of the real neutral rates. Australia, Canada, New Zealand,…
Executive Summary A Structural Downshift In China’s Real Estate Investment Growth  The Politburo has set a date for the much-anticipated 20th Communist Party Congress at which President Xi will most likely secure his third…
Highlights Chart 1A Hot Labor Market  The balance of data that’s come out during the past month points to a labor market that is not cooling very quickly. In fact, it is cooling much more slowly than we anticipated.…
Executive Summary Chair Powell’s Jackson Hole speech did not change our fundamental take on the economy; we still think the expansion will survive through the first half of 2023 at a minimum. Financial markets’ reaction…
Special Report A message for Foreign Exchange Strategy clients, There will be no report next week, as we take a summer break. We will be joining our clients and colleagues for our annual investment conference to be held in New York, on September 7…
Listen to a short summary of this report     Executive Summary On the eve of the pandemic, most developed economies were operating at close to full capacity – the aggregate supply curve, in other words, had become…
Executive Summary US Military Constraint: Strait Of Hormuz  A US-Iran deal would make for a notable improvement in the geopolitical backdrop during an otherwise gloomy year. It would remove the risk of a major new oil shock…
Dear Client, We will not be publishing the Commodity & Energy Strategy next week, as I will be participating in a panel discussion with Dr. Bassam Fattouh, Director of the Oxford Institute for Energy Studies (OIES), which will focus…