Concerns about the US economy are growing, especially when it comes to the potential for a slowdown or recession. JPMorgan Asset Management fixed income portfolio manager Kelsey Berro joins Market Domination hosts Julie Hyman and Josh Lipton to offer her insights.
Berro also notes the administration's balancing act between supporting stock market growth and lowering borrowing rates, noting that "there may be some point" when the administration reverses some policies, but we are not there yet.
"The mitigating factor for the administration is the fact that bond yields (^TYX, ^TNX, ^FVX) are moving lower, which does, in a way, offset some of the pain — not all of the pain — from stock markets coming down," she says.
Berro notes the "paradox" of the Trump administration's "two objectives" of a healthy stock market and "lower borrowing rates," since the administration is attaining lower borrowing rates via "lower expectations for growth in the future."
While risks persist, Berro reassures investors that the Federal Reserve still has room left to help support the economy.
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This post was written by Josh Lynch