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This week brings numerous critical events, including key economic reports, significant Treasury auctions, major central bank decisions, high-profile earnings, and a court case reviewing presidential tariffs.
The world around us is constantly changing, and these changes impact financial markets in a variety of ways. Inflation is up, monetary policies evolve, trade tariffs are revised, economies witness growth revisions—all these changes affect financial markets and individual asset classes differently.
With the labor market already in balance, tariff risks greatly diminished amid ongoing negotiations, and the Fed Funds rate still in moderately restrictive territory, we believe that the Fed should calibrate rates lower.