In his Congress appearance, Federal Reserve (Fed) chair Jerome Powell set the stage for a US rate cut later this month. We expect more to come this year.
Leveraged loans have bounced back from a difficult end to 2018, but numerous risks remain. Investors who haven’t already reconsidered their positioning have a rare second opportunity to do so.
Although the US Federal Reserve kept rates unchanged this month, the direction of travel is towards easier policy. Whether this will be enough to restore corporate confidence and spending may depend as much on the president as the Fed.