/institutional/perspectives/media/signs-of-growth-in-2020-despite-economic-uncertain

Signs of Growth in 2020 Despite Economic Uncertainty

Scott Minerd, Chairman of Investments and Global CIO, joins Bloomberg TV on Fed Day to discuss what current Federal Reserve policy says about the state of the U.S. economy.

December 11, 2019

 

 

Key Takeaways:

  • Based on the Fed’s estimate of the neutral rate, monetary policy remains in stimulative territory.
  • As the 2020 election looms, expect U.S.-China trade tensions to thaw.
  • Repo market volatility could pick up, potentially triggering a sell-off in fixed income toward the end of the year.
  • Absent a major piece of bad news, however, risk assets are likely to rise across the board based on current hedging activity.
  • The Fed is much more proactive now than it was in 2008, so expect swift action to stave off market adversity.

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