As widely expected, the Federal Reserve held interest rates steady at this week’s FOMC (Federal Open Market Committee) meeting, but other aspects of the meeting had notable implications for markets and investors.

Investors in UK inflation-linked bonds are facing two critical sources of structural uncertainty: Brexit-induced volatility and questions about the deeply entrenched (yet problematic) Retail Price Index (RPI).

The divergence between recent bullish factor performance and weaker economic fundamentals should give investors pause.

We believe an active, flexible, multi-sector approach may offer investors better long-term results by focusing on structural opportunities to generate alpha.

We see two overarching reasons for long-term investors to consider continuing to hold a strategic allocation to EM equities: fundamentals and valuations.

Chinese stimulus could be instrumental in deciding which investors are proved right.

Rising input costs from the various import tariffs continue to support prices.

The Federal Reserve’s recently communicated change in its outlook for monetary policy has led to concerns that the Fed is overreacting to market volatility, or worse, succumbing to political pressures. However, we believe there is a more compelling reason for the dovish shift.

We think the Fed is right to be cautious in the face of rising global economic risks along with uncertainties surrounding politics and policy.

After a long period of investment-driven growth, China is changing its playbook.

We think Thursday’s downgraded growth assessment is a precursor to two changes in the ECB’s monetary policy stance later this year.

While we believe the shutdown on its own would have only a modest impact on growth, the combined impact of this and other short-term drags on the economy could slow first-quarter growth close to the zero mark.

In our outlook for 2019, we believe politics and policy out of Washington will continue to drive – and in some cases, weigh on – markets, much like they did in 2018.

We believe the Fed is right to be cautious in the face of rising global economic risks.

Five key macro debates are likely to shape the economic and market outlook for 2019.

We continue to view one to two policy rate hikes in 2019 as more likely.

We believe markets are now broadly priced for an extended period of the status quo – where the current impasse remains, but the UK remains in the EU.