MacKay Fixed Income Quarterly Outlook

Buckle up for a year of economic balancing acts. The U.S. economy skyrocketed in Q3, but brace for a bumpy landing as growth screeches to a halt. The Fed's tightening grip – aka higher interest rates – is finally taking hold.

Here's the tightrope walk we face:

• Growth wobbles: Get ready for slower times ahead. Expecting another Q3 boom? Think again. The post-pandemic party's winding down.
• Rate tango: High rates are here to stay. The Fed's inflation-fighting stance means borrowing costs won't be budging much anytime soon.
• Household squeeze: Payday pinch incoming. Higher borrowing is tightening belts across the nation, potentially impacting spending and economic momentum.
• Job market whispers: Cracks are appearing. The once-booming labor market might show some sluggishness in the coming months.
• Resilience on reserve: The pandemic savings cushion? Deflating. Expect less economic padding as those rainy-day funds dwindle.

But wait, there's hope! This isn't a recession forecast, but a call for agility. 2024 will be a year of navigating uncertainty, where every turn holds both risks and opportunities. Download the full report.