The Fed this week laid out a rough blueprint of where it thinks the economy and policy are headed and prepared markets for the possibility of a sharp economic slowdown ahead. Whether this turns into a recession is anyone’s guess at this point, but Fed Chairman Jerome Powell and his fellow central bankers have strongly … Read more
A major Wall Street firm cited financial instability, not inflation, as the biggest economic risk for the next three months. in subsequent interviews Fed hikes rates by 25 basis pointsMichael Schumacher of Wells Fargo Securities said policymakers were underestimating how quickly tighter credit conditions could hurt the economy. The firm’s head of macro strategy told … Read more
There has been speculation that SVB’s collapse could expose problems lurking in industry-specific ETFs. John Davi, chief information officer at Astoria Portfolio Advisors, put financials at the top of his watch list. “You need to be mindful of your risk,” says Davi, who runs the firm AXS Astoria Inflation Sensitive ETFtold CNBC’s “Advantages of ETFsThis … Read more
Pedestrians walk past the Reserve Bank of New Zealand building on Saturday, June 22, 2019. The Reserve Bank of New Zealand raised interest rates for the sixth time in a row on Wednesday and said it remained comfortable with a planned aggressive tightening path as the authorities sought to reduce the impact of runaway inflation … Read more
The collapse of a Silicon Valley bank has exacerbated the economic slowdown, although the government has taken action to mitigate the impact, according to Danny Moses, a “big short” investor. “You can’t assume regulators know what they’re actually dealing with now, considering they’re completely caught off guard … what just happened to Silicon Valley Bank,” … Read more
Evercore ISI compares the bank stress to another pivotal moment on Wall Street: the savings and loan crisis and the year of the epic crash. “Think you’re going to see this financial stress in the system in 24 hours [Fed] Chairman Powell suggests he may go to 50 [basis points] 22, just to tell you … Read more
Joanna Gallegos, co-founder of fixed-income ETF issuer BondBloxx, said jitters over interest rates are meaningfully pushing investors toward the shorter end of the yield curve. Gallegos, the former head of global ETF strategy at JPMorgan, sees this as a reasonable approach. “It’s a guts trade. This isn’t 2022. This isn’t even five years ago. Yields … Read more
Traditional savings accounts are on the rise. And, for the first time in years, the winner could be a bank near you, according to Wall Street forecaster Jim Bianco. He believes that rising interest rates are providing investors with a safer way to generate income. “Cash isn’t trash anymore. That’s a 20-year-old meme that doesn’t … Read more
VettaFi’s Todd Rosenbluth sees signs of a comeback in managed fixed-income exchange-traded funds and a move away from passive ETF products as Wall Street frets over the number of future rate hikes. The firm’s head of research told CNBC that “it’s unclear how quickly the Fed will slow down and how quickly that will adjust … Read more
U.S. Federal Reserve Vice Chairman Lyle Brainard listens to a question during an interview in Washington, D.C., U.S., Monday, Nov. 14, 2022. Andrew Haller | Bloomberg | Getty Images U.S. President Joe Biden is expected to appoint Federal Reserve Vice Chairman Lyle Brainard to the White House’s top economic policy job as early as Tuesday, … Read more