Global bonds and equities are rising in anticipation that the Federal Reserve will reconsider the aggressive tightening of monetary policy that some fear may contribute to the start of a global recession, but history says the Fed may do otherwise.
A dovish pivot by the Fed has long been tied to the labor market, which has remained strong during the downturn. Then on Tuesday, the Bureau of Labor Statistics announced that job openings totaled 10.05 million in August, a drop of 10% from the 11.17 million reported in July, sparking new hopes the Fed would rethink its current path.
