Bloomberg Wall Street Week - May 19th, 2023
Wall Street Week
00:00
The Fed Still Has a Lot of Work to Do
I don't think this is a time for the Fed to do what markets are suggesting and start cutting rates in the very near future. I would argue if there's a change in the funds rate in the next several months, it's probably up, not down. The bigger concern, it strikes me, would be a credit crunch that's in the offing from the banking problems. If you're thinking about effective monetary tightening, there's probably another 100 basis points of effective federal funds rate increases in that credit crunch.
Transcript
Play full episode
