From the Fed to the currency crisis in Europe, here’s what’s behind this sell-off in the financial markets:

Trader on the floor of the NYSE, June 7, 2022. Source: NYSE Stocks fell sharply, bond yields rose and the dollar strengthened Friday as investors heeded the Federal Reserve’s signal that the battle with inflation could lead to much higher interest rates and a recession. The sell-off was global on Friday, in a week in … Read more

Fed must raise interest rates by 150 basis points: Wells Fargo

It’s a move that would likely cause panic on Wall Street. But Michael Schumacher of Wells Fargo Securities suggests the Federal Reserve is raising interest rates too slowly, telling CNBC’s “Fast Money” that he would seriously consider a 150 basis point hike this week if he were chairman Jerome Powell. “The Fed knows the destination. … Read more

Some Millennials, Gen Zers Are Leaving Investment Accounts Due To Inflation

According to a recent survey by Ally Financial, it has been a difficult year for the stock market, with some consumers closing investment accounts due to inflation and volatility issues. As investors brace for another significant Federal Reserve rate hike, inflation is still hovering around its 40-year high and the S&P 500 is down nearly … Read more

India is the ‘best bet’ in the global economy

The Indian chairman of the Hinduja Group conglomerate said he is optimistic about India, calling it “the very large emerging, fast-moving market”. Speaking to CNBC on Thursday, Ashok Hinduja explained: “We see a recession coming in the US, a recession in the UK, in Europe, trouble in China, [a] problem in Southeast Asia under the … Read more

Inflation ‘collapse’ will lead to big stock market gains: Credit Suisse

Credit Suisse expects the Federal Reserve to halt rate hikes earlier than widely expected due to falling inflation. According to the company’s chief US equity strategist, it will launch a powerful market breakout. related investing news Bank of America warns investors are ignoring the dangers of ‘synchronized’ policy tightening “This is basically what’s broadly priced … Read more

Inflation could be harder to tame than the Fed expects

Font size Another 75 basis point increase in the federal funds target looks very, very likely. Ting Shen/Bloomberg Market participants returned from their summer break, apparently undeterred by the consistent and persistent message from central bank officials that short-term interest rates need to be raised significantly further to bring inflation up to par. US equities … Read more

Why ‘quantitative tightening’ is the joker that can sink the stock market?

Quantitative Easing is credited with driving up stock market returns and boosting other speculative asset values ​​by flooding markets with liquidity as the Federal Reserve picked up trillions of dollars in bonds during both the 2008 financial crisis and the 2020 coronavirus pandemic. in particular. Investors and policymakers may be underestimating what happens when the … Read more

Bad news for equities: Fed will be surprised how harsh rate hikes hit the economy, says BlackRock

Federal Reserve policymakers are about to surprise themselves — and not in a good way when it comes to stocks and other assets considered risky, according to analysts at BlackRock Investment Institute. BlackRock has argued that investors are facing a ‘regime shift’ as the COVID-19 pandemic rocked an unusual period of mild volatility in output … Read more

Economist predicts a ‘whopper’ of recession in 2023 – and that’s not necessarily due to higher interest rates

Investors in the financial markets are concerned that the US is on the brink of an economic downturn as central bankers in Jackson Hole reaffirmed their determination to raise interest rates to bring inflation under control. Steve Hanke, a professor of applied economics at Johns Hopkins University, said he believes the US is heading for … Read more

This asset class is poised to rise 38% as markets overestimate the risk of a global recession, Goldman says

Still reeling from last week’s comments from Fed Chair Jerome Powell, which are riskier like stocks, it looks like they’re taking another beating on Monday. “You can’t collapse the stock market more than 5% on the words of one man,” grumbled FWDBOUNDS chief economist Chris Rupkey, who sees a major credibility problem for the central … Read more