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.
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