Capital Market Outlook

IN THIS ISSUE

• Macro Strategy — Fiscal Dominance Mitigation Measures: In addition to possibly raising the inflation target, there are other measures the government can employ to reduce the pressures that spiraling deficits put on monetary policy.
  
  
• Market View — How Will Foreigners Vote in the U.S. Election?: Think of the greenback as the canary in the coal mine — a leading indicator as to how investors are assessing the future risks associated with the November election.
  
  
• Thought of the Week — Global “Guns & Butter": Higher-for-longer interest rates risk exacerbating fiscal imbalances and have prompted calls for a long-term strategy to reduce them.