Key Takeaways
+ The April tariff announcements (Liberation Day and the 90-day pause) underscore the volatile and uncertain forces that have raised both downside risks to the economy and upside risks to inflation.
+ While the Federal Reserve appears to be still skewed toward rate cuts later this year, Chair Powell acknowledged the economy and labor markets remain solid, providing the policy makers some cushion to “take a step back and let things clarify.”
+ The Treasury 10-Year yield is expected to remain at an elevated, ”normal” level with heightened headline and data dependency producing continued volatility.
+ We believe the bond portfolio decision-making process could benefit from taking an active-passive barbell approach from a solution standpoint.
+ On the equity side, the market is gripped with fear, but we take the longer view and see this as a buying opportunity.
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