Joanne M. Driscoll, CFA
Head of Short Term Liquid Markets
|Putnam ESG Ultra Short ETF|
More from the Fixed Income team
Economic imbalances could mean deep recession or sticky inflation
A deep recession could have a significant impact on financial markets.
Fixed income markets experienced widespread declines in the U.S. and globally in the third quarter of 2022, as inflation remained high and became more broad-based.
Inflation demands Fed's focus as bank lending tightens
Even as bank lending tightens, the Fed may still need to keep rates high for longer to bring down inflation.
The Fed walks a line between inflation and financial stability
Given the fragilities in financial markets, the Fed will likely move cautiously in monetary tightening to fight inflation.