Fed looks ‘dead set’ on tightening financial conditions until the economy slows, warns BlackRock

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

Commerce Secretary Gina Raimondo seen taking Janet Yellen’s job at Treasury after midterm elections

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

‘A game of catch and release’: Are recent stock-market rallies the beginning of a bull run?

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

Durability of US stock market bounce in question as inflation worries linger ahead of payrolls report

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

S&P 500 hovers near bear market. Its ferocity may depend on the economy.

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

Snap’s Terrible Guidance Is Another Big Warning About the Economy

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

The Stock Market Looks Like a Bear. How to Avoid Getting Eaten.

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