Allspring's Jacobsen on Markets, Fed Policy

The video discusses the challenges central banks face in managing market expectations amid limited data. It highlights the uncertainty in monetary policy, with Chair Powell's mixed messages and reliance on outdated economic indicators. The focus shifts to inflation trends and the federal funds rate, suggesting a potential pause in rate hikes by early 2023. Investment strategies are explored, emphasizing defensive sectors and short-duration strategies. The video concludes with an analysis of Treasury market dynamics and interest rate projections.

How are defensive sectors viewed in the context of the anticipated economic recession?

What investment strategies are suggested in light of the current economic conditions?

What expectations are set regarding the 10-year Treasury yield and its potential movement?