On Thursday the US Fed meet and update their Fed Funds expectations (the dots)

Morphic Asset Management

Ellerston Capital

On Thursday the US Fed meet and update their Fed Funds expectations (the dots). The last release saw interest rate markets sell off (yields higher) on the dots with the Fed then having to convince markets not to focus on them. The jawboning has been successful with the market now forecasting rates substantially lower than the dots. Employment and inflation data since March has done little to enable the FOMC to lower their respective projections. So the Fed is in a Catch 22: move the dots lower or taper their dovish rhetoric and let the market move yields higher. Of late, people close to Fed have suggested they are concerned the market is complacently placed which has seen rates move higher. We think the Fed may appear less dovish and as such interest rates will rise, having a dampening effect on equity markets. Our monthly report explores this further: (VIEW LINK)


Morphic is a Sydney-based investment manager that has a strong record for delivering high risk-adjusted returns from investing in global equities in a way that doesn’t harm the environment, society or people.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.