Fed May Need to be Even More Aggressive
Fed may need to be even more aggressive fighting inflation as U.S. household cash exceeds debt for first time in three decades, warns Deutsche Bank.
Fed may need to be even more aggressive fighting inflation as U.S. household cash exceeds debt for first time in three decades, warns Deutsche Bank.
This forecaster sees inflation peaking and U.S. stocks in a bear market by summer.
The policy-sensitive two-year yield climbed as much as 15 basis points to a fresh cycle peak above 2.73%, the highest since late 2018.
The U.S. central bank will probably raise interest rates above levels it considers neutral for the economy next year.
The fastest inflation in decades and the resulting rush by central banks to raise interest rates are stoking recession fears in financial markets.
Ongoing war in Ukraine, high inflation, and Fed's hawkish stance on monetary policy could combine to significantly increase chances of a recession.
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