Andrew Sheets: GDP, Inflation and a Possible Government Shutdown

This podcast episode discusses the market weakness in stocks and bonds, influenced by concerns about ongoing interest rate hikes by central banks. While investors were initially hopeful following the Federal Reserve's decision not to raise rates, they remain apprehensive due to persistent inflation and a strong economy signaling a potential need for further hikes. However, Morgan Stanley believes the Fed will not raise rates further, citing the upcoming release of PCE data as a crucial factor. Other potential market influencers this week include revised US economic growth data and a possible government shutdown, which could lead to both nominal and real yield increases.