The Dow plunged more than 1,000 points on Thursday. The S&P 500 dropped 3.6%, and the Nasdaq Composite declined 5%. Barrons reports that the last time the Nasdaq declined more than 5% was June 11, 2020. The drop followed the Fed’s announcement that a 75 basis point hike was not currently being considered. However, Brunello Rosa, CEO and head of research at Rosa & Roubini, warned that meant several 50 basis point increases would be happening over the next few months.  “It’s clear that all of them [central banks] are talking tough at this stage. But the reality is that lots of tightening will eventually lead to economic contraction.” As the Fed’s battle against inflation rages on, Bridgewater Associates is warning that the longer the current environment lasts, the more difficult it will be for the U.S. central bank to achieve its goals.


CNBC/Matt Clinch
‘We are nowhere near the bottom,’ top economist says as global markets crater

Stock markets are set for more heavy selling this summer as central banks around the world ramp up interest rates to try to combat spiraling inflation, according to one economist.

Brunello Rosa, who is CEO and head of research at Rosa & Roubini, a consultancy he co-founded alongside well-known market bear Nouriel Roubini, believes there is much more monetary tightening to come from central banks, and more bad news on economic activity.

“Now it’s time for a reappreciation of the economic fundamentals around the world in terms of growth,” he told CNBC’s “Street Signs Europe” on Friday.

Read the full story, here.


Kitco News/Anna Golubova
The Fed’s dilemma is ‘as great as any since the 1970s’ – Bridgewater’s Dalio

The Federal Reserve is trying to battle inflation while not triggering a recession. But the longer the current environment lasts, the more difficult it will be for the U.S. central bank to achieve its goals, according to the world’s largest hedge fund Bridgewater Associates.

“Central bankers face a challenging policy dilemma with a collection of uncertainties and risks as great as any since the 1970s,” said Bridgewater’s founder Ray Dalio and Co-CIOs Bob Prince and Greg Jensen.

The inflation problem is still very uncertain. But what has become clear is that the money and credit dynamics are more like the 1970s. And that is mixed in with remaining COVID-related challenges and geopolitical concerns in the form of Russia’s invasion of Ukraine.

Continue reading, here.


Axios/Emily Peck
Soaring fertilizer prices put global food security at risk

The rolling crises of the past few years rendered visible so many vital commodities that plenty of us never gave much thought — nickel, silicon chips, lumber. The latest entrant into this camp: Fertilizer.

Why it matters: Skyrocketing fertilizer costs — like those made from nitrogen, phosphorus and potassium (NPK) — are driving up food prices and, worse, threatening food security around the globe.

State of play: Prices for NPK were up 125% in January from a year before, and rose another 17% from the beginning of the year to March, according to data compiled by the International Food Policy Research Institute (IFPRI).

You can read the full story, here.


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