The PCE price index, the Fed's preferred inflation measure, rose .6% in January and 4.7% on a core year-over-year basis. The latest reading signals that inflation is not falling as expected and that the Fed might still have work to do. So where should investors go from here? Is the risk of a recession stronger than previously thought? Joining us today to discuss all of this and more is David Wolf, portfolio manager on Fidelity’s Global Asset Allocation team. David shares that the GAA team currently is focusing on the medium term, not the short term. He knows the end point of Fed tightening and tries not to get mixed up in all the noise. David and host Pamela Ritchie discuss Canadian, U.S., and global markets today. Regarding European markets, David notes that last fall everyone was worried about gas and the economy shutting down. But the weather in Europe has generally been good, leading to an uplift in markets. David also shares today that the GAA team has some defensive positioning for the long term by using the currency markets, noting that the U.S. dollar has been reliably negatively correlated with risk with equity markets.

Recorded on February 24, 2023.

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