Outlook for the Fed | Mackenzie Investments

Outlook for the Fed

Todd Mattina, Chief Economist and Strategist on the Mackenzie Asset Allocation Team, appeared on Bloomberg TV Canada to discuss what could be expected from the Fed in coming months given its downgraded long-term economic outlook. He also talks about concerns regarding the Fed’s potency in fighting the next recession, the need for more growth-friendly fiscal policy and the challenge in Japan of lifting growth and inflation. 

Outlook for the Fed

Todd Mattina’s interview with Bloomberg TV Canada on August 25, 2016.

Key Points

  • While conditions are in place for a Fed rate hike in September, it is likely the Fed will hold off until December.
  • Central banks have carried too much of the load in terms of stabilizing the business cycle. Governments with high budget deficits and high debt can still engineer more growth-friendly fiscal policies.
  • Japanese policymakers are hitting the wall when it comes to breaking the negative spiral of debt and deflation and may have to consider other tools like helicopter money.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

The content of this video (including facts, views, opinions, recommendations, descriptions of or references to, products or securities) is not to be used or construed as investment advice, as an offer to sell or the solicitation of an offer to buy, or an endorsement, recommendation or sponsorship of any entity or security cited. Although we endeavour to ensure its accuracy and completeness, we assume no responsibility for any reliance upon it.

This document includes forward-looking information that is based on forecasts of future events as of August 25, 2016. Mackenzie Financial Corporation will not necessarily update the information to reflect changes after that date. Forward-looking statements are not guarantees of future performance and risks and uncertainties often cause actual results to differ materially from forward-looking information or expectations. Some of these risks are changes to or volatility in the economy, politics, securities markets, interest rates, currency exchange rates, business competition, capital markets, technology, laws, or when catastrophic events occur. Do not place undue reliance on forward-looking information. In addition, any statement about companies is not an endorsement or recommendation to buy or sell any security.