Buoyed by faster growth and higher inflation expectations, the Fed advances rate hikes to 2023 and broaches the topic of tapering.

Natural herd immunity in predominantly young emerging markets populations looks set to offset slower vaccine rollouts, setting the stage for a resurgence in economic growth.

We believe the U.S. is undergoing a large price-level adjustment, not shifting to a persistently higher inflation regime.

While the market should remain relatively stable this year, we are monitoring three themes that could have a significant impact over the longer term.

To sustainably reach its inflation target, the Fed must raise inflation expectations – and that likely will require a period of above-target inflation.

Amid a brightening economic outlook, the Bank of Canada could begin tapering its bond purchase program this month, though we think it’s a close call and believe a cautious approach is warranted.

The global economy is poised for a strong recovery. Inflation is likely to spike temporarily, but we forecast that much of this rise will reverse later this year.

Democrats could begin working on a tax bill later this year, but resulting tax hikes may be weaker and less of a headwind to growth than some fear.