Investors have recession fatigue

Investors are asking themselves two key questions: how much economic slack is necessary to bring inflation back to target sustainably and are major economies diverging for the first time in two years? Despite rate hikes across the central banks, core inflation and labour markets pose challenges and point toward recessions consistent with our market outlook. Meanwhile, the US presents the possibility of a soft landing, economic differences are emerging among major developed economies. BNY Mellon IM discusses the various scenarios and investment strategies.