Financial Instability and Mispriced Fed Rate Policy: Wells Fargo and Bridgewater CIO Weigh In
TL;DR Summary
Wells Fargo Securities' Michael Schumacher suggests that financial instability is a bigger economic risk than inflation for the next three months, and that policymakers are underestimating how quickly tightening credit conditions could hurt the economy. Schumacher believes that the Fed will hold interest rates higher for longer as long as the financial sector can avoid another meltdown, and predicts that the Fed will probably hike rates one more time.
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