Fed Rate Hikes May Be Over; Markets Position for Lower Inflation and Steady Growth Ahead

IMF forecasts inflation to remain high through 2025, but US core inflation indicators pointing down

Additional Fed rate hikes unnecessary according to strategist; market coming around to this view

Strategist recommends barbell strategy - buy short and long end of Treasury curve

Equities to remain relatively flat through year-end; strategist has S&P 500 target of 4,100-4,300

Increase quality factor exposure in equities to position defensively given risk of recession in 2023-2024