Investment Event
Fed at the peak?
21 September 2023
Key takeaways
- The Federal Reserve left the federal funds target range unchanged at 5.25-5.50%
- The FOMC’s projections indicate the possibility of one further hike this year and a relatively soft-landing for the economy expected next year, leading to modest rate cuts as inflation moderates further
- We continue to argue for a defensive positioning in portfolios given restrictive monetary policy, tightening credit conditions and too- optimistic Federal Reserve and consensus GDP forecasts