: Weekend reads: The Federal Reserve gets a lot of flak for inflation, but it has actually hit its target recently

by | Oct 14, 2022 | Stock Market

The U.S. stock market benchmark rebounded from a steep loss on the day when the government published hot inflation numbers. The S&P 500 Index ended Thursday with a 2.6% gain after investors took a closer look and saw a significant improvement from July through September, as Rex Nutting explained.

The whipsaw action wasn’t limited to stocks, and was described by Rick Rieder, the chief investment officer for global fixed income at BlackRock, as “one of the craziest days” of his career. The bond market’s warning Some investors who focus on stocks might not realize that the bond market is much larger, and that its movements can cause government and central-bank policies to shift. Larry McDonald, founder of The Bear Traps Report and author of “A Colossal Failure of Common Sense,” which described the 2008 failure of Lehman Brothers, explained just how bad the action was in the U.K. bond market over the past few weeks, when 30-year government bonds issued in December traded as low as 24 cents on the dollar. He also predicted what will happen if the Federal Reserve continues on its current course of interest-rate increases. Related outlooks for interest rates:
Fed’s benchmark interest rate may peak above 5% after Sept inflation data, some economists think

This is how high interest rates might rise, and what could scare the Federal Reserve into a policy pivot

Bullish signs for long-term stock investors

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Michael Brush argues the Federal Reserve is movi …

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