Key takeaways from the interview:

• Davis discusses why the odds of a recession remain high but says that he expects it to be fairly mild like the one we went through in 2001.
• That outlook is based in part on the expectation for some weakening in the labor market—pushing up the unemployment rate to around 4.5% at some point—in order to get inflation finally down around 2%.
• Bonds are back; their higher yields are providing income again, in a positive development for investors.
• The return of sound money has been one of the financial markets’ most positive developments in the last 20 years, heralding higher returns for savers.

Listen to Davis's interview in its entirety at Bloomberg.

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