Yield Hunting Newsletter | May 2024 | Revisiting The Pivot Playbook

Summary

• The number of rate cuts by the Federal Reserve has likely been reduced, but at least five cuts are still expected over the next two years.

• Inflation is still declining, but recent data shows a slowdown in the decrease.

• The narrative shift in the next few months looks highly probable, with a shift to downside surprises in inflation expected in April.