Guggenheim’s Minerd says the Fed is going to keep raising rates until something breaks

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Guggenheim's Minerd says the Fed is going to keep raising rates until something breaks

<p>Scott Minerd, Chairman of Guggenheim Investments and Guggenheim Partners Global with the tweet:</p><p>I like how Minerd accompanied his words with that Gilt chart. The Bank of England would probably rephrase his comments as "until something ELSE breaks"!</p><p>In further comments Minerd expanded:</p><ul><li>The Federal Reserve's (Fed) single-minded commitment to fighting inflation ... almost seems to be--dare I say--on "autopilot." </li><li>We all should remember what happened the last time the Fed suggested that the future course of policy was predetermined: After Powell's infamous reference to the Fed balance sheet reduction being on "autopilot" in a December 2018 press conference, stocks collapsed and the Fed was forced to backtrack from the statement, which marked the start of a policy pivot.</li><li>Some Fed policymakers seem to have learned their lesson from December 2018, which is why they are quick to invoke data dependency as a disclaimer to their messaging.</li></ul>

                This article was written by Eamonn Sheridan at forexlive.com.

Source: Guggenheim's Minerd says the Fed is going to keep raising rates until something breaks

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