A major concern for him right now is that even though the unemployment rate is declining and labor figures are very positive, retail sales have declined without any explanation.
“You have to be nimble, and things have evolved with the Ukraine-Russia crisis,” she said. “But I would lean into small changes rather than a massive overhaul of the portfolio.”
Avi Hooper, senior portfolio manager at Invesco Canada, said inflation is running high and the Bank of Canada and the Federal Reserve are both “behind the yield curve. In the fourth quarter of last year the bond market was telling them: ‘You need to raise interest rates. Is required’.
Although the Fed’s last announcement revealed that it considered inflation to be temporary, “what we just heard from the Federal Reserve is almost as if it’s rushing to catch the market,” he said, noting that That six more rate hikes are expected this year, which is very aggressive.
With Canada’s inflation rate running at a record high, he said the Canadian and US economic outlook appears healthy, but the Fed has “potentially put off discussion around the balance sheet until its May meeting. Therefore, You have been tougher than expected, and we think this is more likely to lead to weaker economic growth.”
