'Fed is not your friend': Wells Fargo delivers warning ahead of key inflation report
Publishing timestamp: 2023-02-13 20:47:56
Summary
Wells Fargo Securities' Michael Schumacher believes that the Federal Reserve will likely hold interest rates higher for longer, which could leave investors on the wrong side of the trade. He warns that the market optimism will ultimately fade due to risks tied to China spy balloon fallout and Russia tensions. He recommends the 2-year Treasury Note as a safe place to hide out, and predicts three more quarter point rate hikes this year. However, he notes that there is still a chance that Fed chief Powell could shift course if the economy looks weaker.
Sentiment: MIXED
Keywords: vladimir putin, corporate stock, markets, china, economy, u.s. treasury bonds, investors, jobs, bonds, corporate bonds, nasdaq composite, u.s. dollar, retail sales, business news, russia, retail investors, covid-19, consumer prices, u.s. 2 year treasury, espionage, s&p 500 index, personal income, inflation, stock markets, jerome powell, wall street, treasury notes, recessions and depressions, federal reserve system, investment strategy,
Source: https://www.cnbc.com/2023/02/13/wells-fargos-warning-ahead-of-cpi-report-fed-is-not-your-friend.html