Today on the show, institutional portfolio manager Ilan Kolet comments on the recent Federal Reserve announcement and what this means for markets and the positioning of the Fidelity’s Global Asset Allocation team. Ilan says what stood out to him in the Fed’s decision to hold rates is that there has been great progress made on inflation, but at the same time, in the last few months inflation has not been cooperative. There have been some lags in inflation indicators, but at this point it hasn’t shown up in the data. Once it does, inflation should move towards the target of 2 percent. Ilan points out the Fed decision doesn’t change much in the team’s positioning. The GAA team are still positioned stubbornly as he puts it for elevated inflation and what they think might be a very rare productivity expansion. Ilan also touches on the 60/40 portfolio, what a mini stagflation means, and compare the US versus Canada economic story.

Recorded on May 2, 2024

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