12 Jun 2020 3 min read

The Fed’s pivot

By Christopher Jeffery

I discuss the implications of the Federal Reserve’s stance on interest rates with CNBC.



Back in 2013, Richard Fischer of the Dallas Federal Reserve warned of “feral hogs” in the bond market. The implication was that the Federal Reserve (Fed) shouldn’t worry about the squeals and protestations of investors and should just get on with the job of delivering against its inflation and unemployment mandates.

I would never dream of talking about my fixed-income colleagues in those terms – certainly not when any of them are in earshot! But there’s definitely been a change of tone at the Fed under Jerome Powell. US central bankers now see delivering ultra-loose financial conditions as key to underpinning confidence in the post-COVID economy.

Despite the rebound in the equity market and feral hogs driving credit spreads tighter, there’s about as much chance of seeing some flying pigs over Washington as the Fed raising rates in the next two or three years.

In the video below, I discuss the implications of that pivot with CNBC.

Christopher Jeffery

Head of Macro, Asset Allocation

Chris is Head of Macro within LGIM’s Asset Allocation team. He oversees LGIM’s Economic Research, Rates and Inflation, and the Multi-Asset Strategists and idea generators. He joined LGIM in 2014 from BNP Paribas Investment Partners where he worked as a senior economist and strategist within the Multi-Asset Solutions group. Prior to that, he worked as an economist within monetary analysis at the Bank of England with a focus on the UK domestic economy. Chris graduated from University College, Oxford in 2001 with a first class degree in philosophy, politics and economics. He also holds an Msc in economics (research) from the London School of Economics and is a CFA charterholder.

Christopher Jeffery