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

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.