“I am hopeful this could continue, with little in the way of layoffs but a significant decrease in job openings, which could certainly help to alleviate wage pressures going forward,” said Hooper.
Market-based inflation expectations have also fallen in the U.S., Germany, and U.K. and China’s situation is expected to improve as it becomes loosens COVID lockdowns in its major cities. The U.S. government is also considering rolling back some Trump-era tariffs, and there are signs of regulatory easing in China, too.
“Some parts of the global economy are in poor shape, but other parts are not,” she said. “Some companies are benefiting from this environment while others are not.”
Hooper recommended being selective, focusing on industries and companies that can perform well in this environment. She also recommended watching the consumer price index and central bank activity.
“I’m interested in their outlook for inflation and their respective economies, given this challenging environment,” she said.
