The continuing U.S. economic recovery has stoked concern that inflation could drive interest rates higher, but a more complicated picture may be coming into focus. We examine the long-term market forces in play and the Fed’s policy options.

• Will the Fed twist the yield curve? – The continuing U.S. economic recovery has stoked concern that inflation could drive interest rates higher, but a more complicated picture may be coming into focus. We examine the long-term market forces in play and the Fed’s policy options. (pg 1 and below)

• S. data are mixed with vaccine rollouts and relief package pending – Optimism from a boost in vaccine supplies is tempered by increasing case counts, while rising oil prices add to inflation pressures. (pg 3)

• Regional highlights: Compelling setup for Canadian equities; UK government extends fiscal support for now; China’s "Two Sessions" commence this week.(pgs 3-4

Please click here for Global Insight Weekly - March 4, 2021

“Very often, a change of self is needed more than a change of scene.’ – A.C. Benson