Treasury Curve Signals Recession Risk as Fed Tightening Looms
Investors are worried price rises will prove more sustained than officials expect, forcing policy makers to accelerate interest-rate hikes.
Investors are worried price rises will prove more sustained than officials expect, forcing policy makers to accelerate interest-rate hikes.
Inflation, which most central bankers view as temporary, may well persist amid a strong U.S. economy and tight labor market.
“You’ve got to prick this bubble a little bit,” MS CEO James Gorman. “Money is a bit too free and available right now.” From interview Bloomberg TV.
Dr. Doom’s latest call: Forget about rate hikes or tapering, at least anytime soon.
Market signals point to interest rates rebounding within the next year and a half, said Greg Staples, DWS Group.
The nation’s largest bank said Wednesday that it’s starting to get worried about inflation. Hot pace of price increases could last through 2022.
New problems are arising that are taking center stage for Wall Street, including supply-chain snags and inflationary pressures.