When Will the Fed Get the Message?
Real Vision: Finance & Investing
00:00
Is the Fed Going to Stay at Higher Interest Rates for Longer?
Jay Powell said, we're not gonna make the same mistake as Volcker. The Fed is effectively forecasting something that looks like a mild recession. Most of the carnage we've seen year to date in financial markets has come through the change in policy expectations. We have hardly seen a substantial decline in earnings expectations or significant rise in Earnings Expectations for next 12 months. So again, earnings yield, S&P 500's next 12 months and investment grade US dollar bond yields are all going up.
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