“The bond market is looking through all of that and seeing the economic data points around labor and otherwise.” – 01:45
Tom Carney, Portfolio Manager at Weitz Investment Management, joins Remy Blaire to discuss the current state of the financial markets with a focus on the Federal Reserve’s upcoming decisions and their implications for fixed income investments. With just 35 days until the next Fed meeting, the anticipation is palpable, especially as the CME FedWatch tool indicates a staggering 90% chance of a rate cut.
The discussion begins by examining the latest inflation data, particularly the Consumer Price Index (CPI) figures that suggest inflation remains relatively tame, despite some concerns following recent tariff news. Tom points out that while inflation is still above the Fed’s long-term target of 2%, the bond market is reacting positively, with rates declining year-to-date as investors anticipate a potential cut in short-term interest rates.
Tom’s insights provide a comprehensive overview of the current market dynamics and the strategies that investors can employ to navigate these conditions.