Matt Maley of Miller Tabak states that The Fed is prepared to gamble on the possibility of a recession to reduce inflation.
Matt Maley, Miller Tabak chief market strategist, joins 'Closing Bell: Overtime' to discuss his takeaways from the latest Fed statements and what it could mean for the markets. For access to live and exclusive video from CNBC subscribe to CNBC PRO: » Subscribe to CNBC TV: » Subscribe to CNBC: Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. Connect with CNBC News Online Get the latest news: Follow CNBC on LinkedIn: Follow CNBC News on Facebook: Follow CNBC News on Twitter: Follow CNBC News on Instagram: #CNBC #CNBCTV ...(read more)
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The Federal Reserve is once again putting its focus on inflation, with some analysts warning that it is willing to risk a recession to bring it down. One such analyst is Matt Maley, Chief Market Strategist at Miller Tabak, who argues that the Fed's actions could have negative consequences for the economy. Maley argues that the Fed's recent decision to raise interest rates has put the US economy in a precarious position. He argues that the rate hikes have tightened monetary policy and increased borrowing costs, which could lead to a slowdown in economic growth. The Fed has raised interest rates four times since late 2015, and is expected to announce yet another rate hike at its September meeting. The central bank has said that the rate hikes are necessary to bring inflation back to its 2% target level. But Maley argues that the Fed's focus on inflation is misguided. He believes that the central bank is overestimating the threat of inflation, and that the risk of a recession is much greater. "The Fed has shown time and time again that it is willing to risk a recession to bring down inflation," Maley wrote in a note to clients. "This could have serious consequences for the economy." Maley points out that the Fed has a track record of tightening monetary policy too quickly, which has led to recession in the past. He points to the central bank's actions in 1937, when it raised interest rates to combat inflation, but ended up triggering a recession. Maley also argues that the Fed's rate hikes are putting pressure on emerging markets, which could have a ripple effect on the global economy. He highlights the turmoil in Turkey and Argentina, which has been exacerbated by the Fed's actions. "The Fed needs to be more cautious in its approach to policy, and take into account the potential risks to the economy," Maley said. Despite these concerns, the Fed has signaled that it is committed to raising interest rates in the coming months. Fed Chair Jay Powell has said that the central bank is "on track" to continue raising rates, and has dismissed concerns about the risk of recession. However, some analysts argue that the Fed needs to be more proactive in addressing the risk of recession. They argue that the central bank should be more flexible in its approach to policy, and be prepared to reverse course if the economy shows signs of weakening. "The Fed needs to be more responsive to changes in the economy, and be prepared to adjust its policy accordingly," said Robert Kaplan, President of the Dallas Fed. Overall, the debate over the Fed's policy stance is likely to continue in the coming months. With inflation still below the central bank's target level, the Fed is likely to continue raising rates. But some analysts warn that the risk of recession is increasing, and that the Fed needs to be more cautious in its approach to policy. https://inflationprotection.org/matt-maley-of-miller-tabak-states-that-the-fed-is-prepared-to-gamble-on-the-possibility-of-a-recession-to-reduce-inflation/?feed_id=86976&_unique_id=643643000a1d6 #Inflation #Retirement #GoldIRA #Wealth #Investing #breakingnews #businessnews #cable #cablenews #ClosingBellOvertime #CNBC #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #stockmarket #stockmarketnews #Stocks #usnews #worldnews #RecessionNews #breakingnews #businessnews #cable #cablenews #ClosingBellOvertime #CNBC #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #stockmarket #stockmarketnews #Stocks #usnews #worldnews
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