College basketball’s tournament kicked into high gear this week as teams strive to make their way to the early-April championship game. The next few weeks will likely bring a fair share of twists and turns, some unforeseen matchups and a few upsets on the road to the championship. Even with the best handicappers, the future is always difficult to predict. In many respects, there are some surprising parallels between the college basketball tournament and the financial markets. Over the last few weeks, the market has endured a number of twists and turns in the economic narrative (i.e., rotating between ‘soft,’ ‘no’ and ‘hard’ landing), dealt with three unforeseen bank failures and is now confronted with the potential fallout that could upset the Federal Reserve’s (Fed) game plan for tackling inflation. How will recent events impact the Fed’s economic outlook and the trajectory for rates?
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