The Objective Advisor

Even if soccer isn’t your thing, it is hard not to notice the excitement surrounding the World Cup. Traditionally, Americans have been skeptical of soccer compared with football or basketball because it’s not as high scoring, the pace seems slower, and a lot of complexity happens on the field.

But that’s also part of why it can be worth watching. Soccer asks you to observe differently. A good play can take a long time to build, and if you focus only on the scoreboard, you’ll miss the teamwork, intelligence, and patience that make the big moments possible.

In his recent speech, Federal Reserve (Fed) Chairman Jerome Powell focused on the fragilities of the labor market and is preparing markets for the new phase for policy. “The time has come for policy to adjust.” A soft landing looks achievable, barring any shocks. Disinflation while preserving labor market strength is only possible with anchored inflation expectations, so an independent and credible central bank is key. One of the best concepts in the speech for investors to understand is the current data shows an evolving macro landscape. The jury is still out on if the Fed can successfully manage the risks to both sides of their dual mandate.