Fynsa
At the traditional financial conclave, the Fed chairman noted that the move in rates continues with more upside risks than downside risks, and that he was ready to continue raising them if necessary.
And suddenly, interest rates are important again.
It seems fair to ask whether the dollar's upward trend will continue, or whether these are levels at which to close out long positions or perhaps bet on a decline.
Despite higher financing costs and home prices than two or three years ago, the U.S. residential market will continue to perform well.
Whether the Fed will raise rates again or pause at its next meeting in September will depend on how the data unfolds.
There are still opportunities, but the focus should remain on the search for investment grade opportunities in the region, to the detriment of high yield.
Nathan Pincheira and Humberto Mora of Fynsa share their outlook on the economy and investments for the first half of 2023 and the coming months.
Our Softlanding baseline scenario is based on a moderation of inflation and greater resilience of activity.
Speeches and communications from the Central Bank Board have only been along one line: it is still too early, risks are high and policy error can be very costly.
As long as the U.S. economy continues to prove more resilient, and if monetary policy cannot quickly become more accommodative, it is difficult for the dollar to sell off substantially.
