Global Markets Overview: Late February 2022

Tracking the economic policy pivot

• Financial markets are at a pivotal point in the capital cycle. In advanced economies, the major central banks are beginning to tighten monetary policy and governments are slowing their pace of spending in response to strength and high inflation.
• We have developed a prosperity “dashboard”, which aims to help investors track the key features of macro policy and the economy and understand the future financial risk and return environment. It focuses on the following four categories: (1) economic policy; (2) inflationary pressures; (3) the capital cycle; and (4) asset prices.
• For example, high current inflation is putting pressure on monetary and fiscal policy. While we forecast inflation to fall in the second half of the year, there is an unusually high level of uncertainty around this outlook. In particular, the risk of high inflation being sustained for longer needs to be watched closely.

To stay up-to-date and receive additional special feature reports from WTW on global capital markets, please contact David Hoile.

Author

---

David Hoile

Global Head of Asset Research at WTW

David is the Global Head of Asset Research at WTW, responsible for economic and capital market research. He also is a member of the Investment Assumptions Committee, who help guide investment policy globally.

email Email phone +44 20 7170 2144

---