Abbey Road Investment Views, Oct. 2022
Policy moves shake markets
• Interest rate expectations have risen further
• Bonds may offer opportunities (Focus p2)
• The US midterm elections loom (p3)
• UK tax cut shock, Swiss bank wobbles (p3)
• China and Italy watched
The Fed raised rates 75 bps in September (to 3.25%) and continued to talk tough. The betting now is that the Funds rate will peak in the 4-5% range early next year. Key will be the
behaviour of the economy and particularly the labour market.
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