Aug 30, 2022
In this episode, Escala Partners CIO, Tracey McNaughton, shares her views on US Fed Chair Powell’s “whatever it takes” speech noting it left no doubt – the pain of being too tough on inflation is not as great as the pain that would come from being too soft. Market optimism for rate cuts in 2023 have taken a step back as a result.
(0:46) - Jay Powell’s speech last Friday was highly anticipated. Tracey, what was your take?
(5:04) - Does the speech change your asset allocation views at all?
(8:04) - There was an article in the Wall Street Journal which argued that the Fed would more likely go too hard than too soft.
(11:00) - The housing market in the US is looking increasingly sick. How does this tie in with your mild recession thesis?
(13:41) - Your underweight to international equities is specifically focussed on Europe.