Central bank policies are set to diverge from the steady hikes characterizing the first half of 2023, contributing to increased market volatility for the remainder of the year, economists at Charles Schwab report.
In the second half of the year, central bank policy is diverging from the steady pace of hikes seen in the first half of the year.
Perhaps most significantly, a potential unwinding of the Yen carry trade could roil markets.
These shifts could mean more volatility in currencies, interest rates and stocks than seen in the first half of the year.