It’s Still a Reach for a Goldilocks Outcome… (Podcast Edition)

George Goncalves, Head of Macro Strategy in the Americas, shares how our latest macro thinking has evolved, where our longstanding view that the weak labor market and ongoing large revisions would result in a Fed pivot and a restart of easing in September. There was a high level recap of the special topic from the latest monthly which covered Asia FX reserves. Our analysis shows that we’ve come full circle since the Asia financial crisis which was the catalyst for Asia to accumulate dollars, but with tariffs now in place, perhaps less dollar recycle occurs with clear implications for UST demand. Lastly, our podcast was recorded on the first official day of the government shutdown. George goes into what are the potential scenarios for the economy and how it could impact the way the team views rates and house view.