April Research Briefing RECAP: MPP Says 2022 Is A Tale of Two Halves
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posted by CAPIS on 04/22/2022 at 2:05 pm
by CAPIS on 04/22/2022
Last week, we held our April research briefing, featuring guest speakers John Fagan and Brendan Walsh, co-founders of Markets Policy Partners (MPP). MPP is a Washington, D.C.-based independent advisory service that informs clients on matters at the intersection of markets and policy, and in the public sector. Click here for a video of the research call MPP’s presentation addressed the following topics: Tectonic Shift by the Federal Reserve [2:57] MPP said the FOMC has moved definitively towards draining liquidity from the economy amid the current supply-driven shock in the production chain. [3:35] While the markets and growth surge in the first half of the year, expect the second half to be challenging growth-wise and will be choppy. [6:05] The Federal Reserve will “take every rate hike” the markets will allow – meaning the FOMC might tighten monetary policy even faster and more aggressively than originally forecast. [6:35] Core inflation may be hitting its peak for the year and supply-side bottlenecks will get worse – spurred in part by China’s “zero-COVID” tolerance policy. [8:10] Stagflation is the new buzzword amid slower growth expectations. [9:05] The FOMC could raise rates by more than 50bps at a time, possibly 75bps,…