Wall Street Fears Fed Tightening Will Not Work

Wall Street isn’t all that confident the Federal Reserve can end its easy money polices without a market crash, a recession or high inflation.

In its July Fed Survey, CNBC asked Wall Street pros how the Fed’s current policies will end and found market participants surprisingly divided.

Thirty-four percent say the most likely outcome is that it “will end badly,” which we defined as either a recession, stock market crash, high inflation or some combination of the three.
Another 34 percent, however, think the Fed will “navigate a smooth transition to more normal policy.”

A quarter of the 36 respondents, who include economists, analysts and fund managers, think the risks are evenly balanced.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza