Most economists are expecting the Fed to announce another 75 basis point hike after this week’s FOMC meeting. Yet, experts fear it could cause deeper economic pain for millions of American households and businesses. However, some argue that a 75 basis point hike isn’t enough. Wells Fargo Strategist Michael Schumacher told CNBC that the Fed needs to just “rip off the Band-Aid” and hike rates by 150 basis points.

TF Metals Report via GoldSeek/Craig Hemke
Still on “Crash Watch”

Through the month of September, we’ve been on “Crash Watch” over concerns that a global equity market drop could lead to a liquidity-driven margin call across all asset classes. The watch continues through this week’s FOMC meeting and then into October.

What is “Crash Watch”? It’s sort of like a Tornado Watch for those of us in the American Midwest. A Tornado Watch is issued when atmospheric conditions are supportive of tornado development. Only when an actual tornado develops is a Tornado Warning issued.

And right now, we are under a Crash Watch. What are the conditions that prompted the watch? Here are just a few:

You can keep reading, here.

Fox Business/Megan Henney
Fed likely to deliver more economic ‘pain’ with another significant interest rate hike

The Federal Reserve is set to escalate its battle against inflation this week with another substantial interest rate hike, risking deeper economic “pain” for millions of households and businesses nationwide.

With inflation unexpectedly accelerating in August and the job market still growing at a healthy clip, the U.S. central bank is widely expected to approve another 75-basis-point rate hike at the conclusion of its two-day meeting on Wednesday. Some investors are even betting on a full-percentage point move as the Fed faces mounting pressure to tame demand and slow surging consumer prices.

Continue reading, here.

Business Insider/George Glover
The Fed needs to ‘rip off the Band-Aid’ and hike interest rates by 150 basis points, Wells Fargo strategist says

The Federal Reserve should hike interest rates by 150 basis points — even though that would likely spark “carnage” in stocks, a top Wells Fargo strategist has said.

Most economists expect the US central bank to announce another jumbo rate hike of 75 basis points at the conclusion of its two-day meeting later Wednesday.

But given the Fed likely wants to raise its base rate from 2.5% to 4%, it should consider getting there by making one even more supersized hike in its September policy decision, Michael Schumacher told CNBC on Tuesday.

You can keep reading, here.

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