Philipp Hildebrand, BlackRock’s vice chairman, says investors are wrong to think the Fed will begin pulling back from interest rate hikes this year. “I think central banks are going to continue on their tightening path. They’re going to be very careful, very focused on not losing the long-term inflation-expectation anchor,” he said, adding that he doesn’t see any chances for easing this year. In other news, a World Economic Forum survey found that 63% of chief economists polled expect the global economy to experience a recession this year.

Business Insider/Zahra Tayeb
Investors are wrong to expect central banks to start pulling back from interest rate hikes, top BlackRock exec says

Investors are wrong to think central banks will start pulling back from interest-rate hikes this year, because controlling inflation is still very much in focus, according to BlackRock’s vice chairman.

“I think central banks are going to continue on their tightening path. They’re going to be very careful, very focused on not losing the long-term inflation-expectation anchor,” Philipp Hildebrand said in a Bloomberg interview Monday at the World Economic Forum in Davos.

“I don’t think we’re going to see any chances, frankly, of easing, this year. I think the market has that wrong,” the former head of the Swiss central bank added.

You can read the full story, here.

Fox Business/Aislinn Murphy
Global recession likely, say 63% of chief economists in WEF survey

Many chief economists offered somber predictions about whether the global economy would fall into a recession in 2023, according to a World Economic Forum (WEF) survey released Monday.

In the WEF’s Chief Economists Outlook survey, 63% of chief economists polled indicated they had expectations of the global economy experiencing a recession this year. Of that figure, 45% said one was “somewhat likely” and 18% said, “extremely likely.”

The share of chief economists putting the probability of a global recession at “extremely likely” has more than doubled compared to those who thought so in September, according to the WEF.

Continue reading Craig’s full prediction, here.

Reuters via Yahoo Finance/Niket Nishant and Noor Zainab Hussain
Goldman Sachs reports 69% drop in Q4 profit

Goldman Sachs Group Inc on Tuesday reported a bigger-than-expected 69% drop in fourth-quarter profit as it struggled with a slump in dealmaking and weakness in its wealth management business.

Wall Street banks are making deep cuts to their workforce and streamlining their operations as dealmaking activity, their major source of revenue, stalls on worries over a weakening global economy and rising interest rates.

Goldman is also curbing its consumer banking ambitions as Chief Executive Officer David Solomon refocuses the bank’s resources to strengthen its core businesses such as investment banking and trading.

You can read the full article here, here.

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