While slower earnings growth is a broad headwind for both corporate debt and equities, it also tends to increase performance dispersion.

Even with additional cuts, we think economic growth could slow to a below-trend pace and prompt the unemployment rate to rise over several subsequent quarters.

The institutional “golden fetters” of the interwar period have been replaced by fundamental “global fetters” that severely constrain monetary policy.

The risk of recession has risen, but it’s not a foregone conclusion.

We think the Federal Reserve will look past stronger-than-expected consumer price increases in June and July.

The last few days have highlighted the inherent fragility in markets – and the growth outlook globally.

It is no longer absurd to think that the nominal yield on U.S. Treasury securities could go negative.

The U.S. has been officially engaged in trade talks with China since March 2018 and has had very few tangible results.

Come the fall, the ECB will likely deliver yet another easing package that could effectively deplete its monetary policy toolbox.

We find the Fed’s statement clear, and we expect another rate cut as soon as September with possible additional cuts thereafter.