Recession fear versus inflation fear in the US

For much of May, US Bonds outperformed US equities as fear of recession overtook fear of inflation but this trend partly reversed in the last trading week, driven by hope that the US consumer spend remains strong and the US Fed pauses its tightening cycle.

Prices normalised to 100 at start of May 2022

Chart: Hasnain Malik Source: Bloomberg (29 May 2022), Tellimer Research Get the data