Global income plays

In this episode of The Markets, Chris Hussey interviews Gurpreet Garewal, a macro strategist from Goldman Sachs Asset Management, about the impact of tariffs on the US and global economies. They discuss recent inflation data, the potential for the Fed to cut rates, and investment opportunities in bonds and credit markets. Garewal suggests that the full impact of tariffs on consumer prices and business investment is still unfolding, and she anticipates a slowdown in growth during the second half of the year. While the Fed is likely to remain in a wait-and-see mode, there are potential paths for rate cuts later in the year. Garewal advises investors to look at global opportunities, particularly in emerging markets and developed markets outside the US, and to be selective in credit investments, focusing on income-generating assets and diversifying beyond US large-cap equities. She highlights Q2 earnings as a key indicator of how companies are responding to the tariff shock and also mentions fiscal risks in France and Japan as areas to watch.