Do not doubt the Fed’s resolve

The U.S. Federal Reserve now acknowledges that unemployment will likely rise to 4.4% as the central bank battles inflation – the kind of move that previously has led to recessions.

“This is a departure from central bank behavior in the post-Global Financial Crisis era,” says James Camp, CFA, Managing Director of Fixed Income and Strategic Income at Eagle Asset Management. “The Fed and other global central banks are no longer the provider of accommodation and liquidity at the first sign of stress.”

And that, Camp says, already is shaping opportunity in fixed income.

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