Opportunities to speak before Congress are rare. So, when US lawmakers invited Capital Group Vice Chair Jody Jonsson to share her perspective on aligning public policy with shifting market conditions, she welcomed the chance.
“As the Fed moves to reduce policy guidance, uncertainty over the short-rate path is likely to rise, creating additional volatility along the yield curve”
The reform plus fiscal package is genuinely large and potentially a regime change, but not yet an unqualified “buy Germany/Europe” signal. The principal upside risk is a confidence-led private capex cycle. The key downside risk is implementation failures and higher bond yields, which could turn a productive investment programme into a less equity-friendly fiscal expansion.