Gary Schlossberg, global strategist at Wells Fargo Investment Institute, on Friday, said that the global economy should hold up well in 2022, especially for emerging markets (EMs).

Share Market Live

NSE

In an interview to CNBC-TV18, he said, “As we move into 2022, we see a better environment for the global economy and for emerging markets in particular, and that should work to India's advantage, and we certainly hope that they are able to get out in front of this emerging wave of the pandemic that may be developing.”

On Fed Chair Powell's speech, Schlossberg said, “We are building in a little too much. I think the expectation should be that Chair Powell will talk about progress in achieving goals, the labour market, the economy, a little bit of concern about inflation, but really leaving his options open until the September Federal Open Market Committee (FOMC) meeting. I would be surprised if there is anything definitive.”

Also Read: Wells Fargo finds emerging market prospects favourable, increases India bet

“The economy has been moving at a good clip, we do expect another strong year in 2022, but getting from here to there, we could see some uncertainty, some of the high-frequency numbers in the US, in contrast to what is happening in India, are beginning to roll over a bit. Now, this could be nothing more than a shift, more sustainable growth as its growth recovery matures. But clearly, the pandemic (COVID-19) fourth wave is having an effect to some extent on consumer sentiment and on consumer spending. So, while the economy is growing at an above-average rate, there is some uncertainty about the extent of the momentum and that could create some uncertainty at the Federal Reserve about the exact timing of tapering. We are still looking for a September announcement,” he said.

Also Read: Jackson Hole Symposium: Fed Chair Powell might not want to create turbulence for market, says Wells Fargo's Jacobsen

For the entire interview, watch the video

(Edited by : Dipika Ghosh)