Entries by Drew Millard


July 2023

The four-decade period of stable inflation and interest rates has ended, and a new regime of greater macro and market volatility is playing out. As the global economy continues to recover from the energy crisis, we continue to expect moderate global growth in 2023-24, with a drag from the cumulative impact of monetary policy tightening […]


June 2023

Globally, central banks currently face a trade-off between persisting with their pace of tightening cycles until inflation is back down to more manageable levels and triggering further distress in the financial sector. There have been some reductions in headline rates of inflation due to monetary tightening, a stabilization of commodity markets, and an easing of […]


May 2023

For over a year, the global economy has avoided recession. Beneath the surface however, imbalances can be seen in the latest upturn. Much of the gain experienced globally owes to a reopening surge in China. Regional imbalances outside of China as well as sectoral imbalances have emerged as the goods-producing sector stalled last quarter after […]


April 2023

Against a backdrop of rate hikes and jitters in the banking sector, the effects of tighter monetary policy remain the focus of our outlook for the remainder of 2023.The IMF has expressed concern about a global economy that is experiencing a gradual recovery that remains fragile, and it was noted that downside risks dominate in […]


March 2023

Recent data suggest that the economy’s strong start to the year was sustained in February, with consumption growth set to accelerate in the first quarter and payroll employment growth robust, while core inflation remained too high for comfort. But the collapse of Silicon Valley Bank on March 10th has further contributed to our view that […]


February 2023

Current widespread growth increases the risks that a recession will take longer to materialize, require higher policy rates, and be deeper than was expected. Global downturns are amplified when synchronized. Central banks are approaching the final stage of their tightening cycles. It will take time to ascertain the magnitude of the inflation unwind. While there […]

January 2023

2022 was a year characterized by geopolitical tensions, rate hikes, and inflation concerns across regions, with significant losses across asset classes. Oil prices surged in March as the Russia-Ukraine conflict disrupted global oil trade flows, but prices reversed in the second half of the year as recession risks multiplied. The seeds for a 2023 recession […]


December 2022

The global economy continues to slow as we near the end of 2022. The last time that the world experienced a central bank confluence of growth-restricting policies was in 1982, when a global recession was induced. There is good reason to expect the same in 2023. The weak points include China with Covid policies that […]


November 2022

The global expansion has downshifted to a slower pace but remains resilient. We remain in the most aggressive and synchronized monetary tightening cycle in 40 years. Underlying inflation persists at multiple %age points above targets and central banks remain in tightening mode. In response to the U.S. CPI update for October, the 10-year-2-year yield spread […]


October 2022

The Fed’s continuation of rate hikes in September to fight rising inflation, economic growth and geopolitical risk concerns, and a soaring US dollar combined to drive losses across all asset classes in Q3.   During past inflationary environments, inflation came in waves. This time will be no different. As supply induced inflation begins to decline over […]