The creator of the index measuring bond market volatility says the Fed isn't about to pivot just yet.
Is there light at the end of the tunnel? Sure, The Wall Street Journal reported that a 75 basis point hike at the upcoming Fed meeting is all but signed and delivered, but Federal Reserve Vice Chair Lael Brainard said that “at some point” there will be risks from overtightening, and the Beige Book said the outlook for future economic growth remained “generally weak.” Heck, even Apple AAPL kept prices on its new iPhone stable.
Harley Bassman, managing partner at Simplify Asset Management and the self-described Convexity Maven, does not count himself in the imminent pivot camp. He also said it’s unlikely the recent pullback in energy prices will be sustained into the winter. While there’s a big gap right now between European and U.S. natural-gas prices, he expects over time these prices to converge. “I can assure you it will not be euro prices collapsing,” said Bassman.
“Since it is unlikely house prices will decline by 23%, especially with the Millennial demographic forming families, the more likely outcome is that the extra cost of a mortgage will be drawn from the discretionary spending on their beloved ‘experiences’; and this will reduce overall economic demand,” he said. Another drag to the economy is coming from reduced migration.
Fed Chair Jerome Powell takes part in a moderated discussion set to start at 9:15 a.m. Eastern, and the latest jobless claims report also is set for release. The Biden administration has leased the fewest acres for oil and gas drilling since the Truman administration.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Market Bracing for Another Three-Quarter Point Hike From the Fed This MonthThe probability of a three-quarter point hike moved to 82% Wednesday morning, according to the CME Group.
Read more »
Asian Stock Market: Bears keep reins amid downbeat Aussie/China data, hawkish Fed betsAsian Stock Market: Bears keep reins amid downbeat Aussie/China data, hawkish Fed bets – by anilpanchal7 Asia RiskAppetite Fed Recession Equities
Read more »
The Fed Wants You to Lose Money in Stocks and Probably Crypto, TooTo bring inflation down, the central bankers at the U.S. Federal Reserve need you to lose money, whether it's in stocks or crypto. It's a dangerous game. HeleneBraunn reports.
Read more »
S.A. request for fed funding for $50M airport expansion rejectedSan Antonio wanted $50M for airport expansion. Corpus Christi got funding. S.A. didn’t.
Read more »
Fed leader pushes Congress for legislation on stablecoinsCongress must act on stablecoins, according to a leader at the Federal Reserve.
Read more »
US Dollar Index tests the breakout of 110.20-110.30 range, Fed Powell’s speech eyedThe US dollar index (DXY) is aiming to recapture a two-decade high at 110.55 in the Asian session. The asset has tested the upside break of the consol
Read more »