Episode Details

A New Fed Era Begins as Inflation Lingers and Markets Broaden

Episode 216 Published 4 months, 2 weeks ago

Description

Markets ended the week balancing persistent inflation data, evolving Fed expectations, and shifting equity leadership. CPI and PPI both surprised to the upside, reinforcing the view that inflation remains sticky and likely keeps the Fed in a restrictive stance ahead of Kevin Warsh’s first FOMC meeting as chair. While geopolitical tensions in the Middle East added volatility early in the week, markets recovered on signs of potential de-escalation. In equities, leadership broadened beyond mega caps, with equal weight indices gaining strength as investors reassess concentration risk. With rates expected to stay higher for longer, disciplined positioning and diversification remain key in navigating the current environment.

Speakers:

Brian Pietrangelo, Managing Director of Investment Strategy

George Mateyo, Chief Investment Officer

Rajeev Sharma, Head of Fixed Income

Stephen Hoedt, Head of Equities

02:05 — CPI and PPI show persistent inflation pressures

04:00 — Fed outlook ahead of Kevin Warsh’s first FOMC meeting

06:30 — Geopolitics and market reaction to Middle East tensions

10:00 — Bond market implications and higher for longer rate expectations

15:15 — Equity market breadth improves as SpaceX IPO draws attention

Additional Resources

National Call Replay: 2026 Mid-Year CIO Update