The Federal Reserve’s battle to get inflation down from a 40-year high probability means it will raise interest rates until the US economy slows, strategists at the BlackRock Investment Institute warned on Tuesday. “The Fed seems dead set on raising rates this year to levels that, in our view, would clearly slow the economy,” Jean … Read more
The Biden White House could experience a changing of the guard after November’s midterm elections, and analysts see the U.S. Treasury as one department that’s likely to get a new leader. The period “after a midterm shellacking” would be a “natural culling point” at the White House, said Ben Koltun, director of research at Beacon … Read more
The US stock market’s deteriorating breadth means rallies may be short-lived, according to Charles Schwab’s chief investment strategist Liz Ann Sonders. “Even in the most brutal of bear markets, you get sharp, counter-trend rallies,” Sonders said in a phone interview on Thursday. In her view, the stock market’s recent moves higher, like the one leading … Read more
Investors took a breather this week as US stocks bounced back from a weeks long selloff and the latest reading on inflation offered glimmers of optimism to those hoping for a peak in price pressures. Beneath the surface though, strong undercurrents of worry about inflation remain. April’s reading on the Federal Reserve’s preferred gauge showed … Read more
Plenty of investors are convinced US stocks are already in a bear market, even if the benchmark S&P 500 has yet to technically confirm it. History indicates that the ferocity of any decline may depend on whether or not the economy averts a recession. That sounds obvious, but the debate over whether the economy is … Read more
Text size Snap triggered a slide in stocks when it said the economy has worsened faster than it expected. Patrick T. Fallon / Bloomberg Ignore this at your peril. Some analysts are telling clients not to overreact to news that Snap slashed its financial guidance, mentioning a more difficult business environment. But it is likely … Read more
It could be very difficult for Powell and the Fed to tame inflation without causing an economic slowdown. Photo illustration by Barron’s staff; (reference) Dreamstime (5) Text size Like Winnie the Pooh in the Hundred Acre Wood, investors have lived with the naive worldview that everything will be all right. That kind of thinking can … Read more