Tag Archives: Feds

The Federal Reserve, led by Jerome Powell, raised interest rates earlier this month.Samuel Corum/Getty Images A “stubborn” Federal Reserve has increased the likelihood of a prolonged recession, according to Axonic Capital’s Peter Cecchini.  That’s because the Fed could cause economic whiplash that leads it to cutting interest rates sooner than expected. “The 1970’s drawdown scenario of almost 50% for the S&P 500 is becoming all the more likely,” Cecchini said. The Federal Reserve’s decision to… Source link

(Bloomberg) — Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast. Most Read from Bloomberg Federal Reserve Bank of St. Louis President James Bullard urged policy makers to raise interest rates to 3.5% this year to bring inflation down from near a four-decade high, adding that some of those hikes could be reversed late next year or in 2024. Bullard reminded the Economic Club of Memphis on Wednesday that in late 2019, prior to the Covid-19 pandemic,… Source link

Bill Ackman is a billionaire investor and hedge fund manager.Elsa/Getty Images Markets aren’t confident that the Federal Reserve can tame record inflation, Bill Ackman tweeted Tuesday. He predicts that inflation can only come down if the Fed aggressively raises rates, or if stocks crash. “It ends when the Fed puts a line in the sand on inflation and says it will do ‘whatever it takes,'” Ackman said. Bill Ackman, the CEO and founder of Pershing Square Capital Management, said markets are facing a… Source link

(Reuters) – Kansas City Federal Reserve Bank President Esther George on Monday said she expects the U.S. central bank to lift its target interest rate to about 2% by August, with further action dependent on how both supply and demand are affecting inflation. “Fed policymakers have emphasized a commitment to act expeditiously to restore price stability, and I expect that further rate increases could put the federal funds rate in the neighborhood of 2% by August, a significant pace of change in… Source link

Investors are warming to the fact the Federal Reserve is about to throw ice cold water on the hot U.S. economy where inflation is surging to four-decade highs. But whether the Fed hikes 50 basis points next week — or even a previously-unfathomable 75 points — Jerome Powell and company are unlikely to achieve the proverbial (and rare) soft landing, according to one veteran trader. Bill Smead, chief investment officer at Smead Capital Management, compared the present bout of persistently… Source link

Interactive Brokers founder and billionaire Thomas Peterffy has spotted one likely unintended consequence of the Federal Reserve embarking on raising interest rates. “There is a lot of leverage in the system as the Fed begins to raise rates. We will be looking at bankruptcies maybe among many of the private equity firms that are invested in on the high leverage, and in several businesses that basically will not be able to pay the interest,” Petterffy told Yahoo Finance. Despite that very real… Source link

This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe Wednesday, March 16, 2022 Inflation is raging at a pace not seen in 40 years, making it a near certainty that the Federal Reserve will raise interest rates at the conclusion of its policy-setting meeting this afternoon. How do we know? Because Fed Chairman Jerome Powell said so. “I’m inclined to propose and support a 25 basis point rate hike,”… Source link

Wall Street’s rate-hike jitters have wreaked havoc on high-growth tech stocks — and Cathie Wood’s Ark ETFs were front and center for the damage yet again. Still, Wood dismissed concerns over inflationary pressures, reaffirming an earlier assertion that deflation remains the focus for her firm during a webcast on Tuesday. The Ark Invest CEO also said that price increases were likely to ease as supply chain issues resolve. Wood’s remarks come amid Federal Reserve Chair Jerome Powell’s… Source link

Mohamed El-Erian says the Fed’s inflation screwup will ‘go down in history’ — but he’s using these 3 stocks to take advantage If a prominent economist is right, the Federal Reserve’s reaction to skyrocketing inflation is “going to go down in history as one of the worst inflation calls.” The Fed has said for months that inflation is a “transitory” trend triggered by the COVID-19 pandemic. Mohamed El-Erian, chief economic adviser at asset management firm Allianz SE, doesn’t… Source link

The August jobs report added just a third of the jobs expected, changing the expectations for the Fed’s future moves. Economists agree that the rising specter of the Delta variant over the economy is responsible for the slowdown in jobs numbers. Though demand for labor is still strong, the changes in the economy’s trajectory make it “unlikely” the Fed will announce a taper at the September meeting, Bank of America analysts wrote in a note Friday. A taper is when the Fed slows down its… Source link