“We Will Have A Hard Landing At Some Point. I Guarantee You That.”
Can you guess who the quote in the article title is from? I will give you a hint. It wasn’t me. I know that it sounds like it could have come from me, but it actually comes from a very big name on Wall Street. Ellen Zentner is Morgan Stanley’s chief U.S. economist, and she is the one that said it. During an interview with CNBC she warned that “the tightening impacts from monetary policy” will have enormous consequences for the U.S. economy in the months ahead…
“We will have a hard landing at some point. I guarantee you that. We’re all wondering: When does that come?” she said. “The point that Dimon makes is that there are these cumulative impacts that build over time, and we are in the camp that we haven’t yet seen all of the tightening impacts from monetary policy,” she added, referring to the impact of Fed rate hikes.
She makes a really great point.
The consequences of interest rate hikes are felt over time.
Higher interest rates have certainly started to cause a lot of problems, but if rates are not brought down soon the level of pain that we are experiencing will begin to go up dramatically.
Unfortunately, the Fed is not likely to reduce interest rates any time soon because inflation continues to run hotter than expected…
Inflation increased by the largest amount in almost a year, according to the Fed’s preferred measure – confirming expectations interest rates will not be cut until around June.
The so-called core personal consumption expenditures (PCE) index – which excludes volatile food and energy prices – increased 0.4 percent between December and January.
Marko Kolanovic, the chief market strategist for JPMorgan Chase, believes that the U.S. economy could be headed into “something like 1970s stagflation”…
…click on the above link to read the rest…
