Key Takeaways
+ While geopolitical developments continue to make headlines and bear scrutiny, the underlying fundamentals of the U.S. economy remain resilient, warding off recession fears.
+ Although the Federal Reserve appears to be still skewed toward rate cuts later this year, Chair Powell acknowledged that monetary policy remains “well-positioned,” and there’s “no hurry” to cut rates.
+ 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.
+ Stocks have upside catalysts that include robust lending activity, a muted oil price reaction to the Iranian conflict and a generally stable labor market.
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