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Fed inflation struggle to exacerbate market turmoil: Canaccord’s Dwyer

Stocks can go into deeper tail spins.

Tony Dwyer of Canaccord Genuity predicts that interest rate hikes in the 1980s will exacerbate the turmoil and increase the likelihood of a recession.

“Usually I’ve been bullish for years, but there’s the issue of funding availability,” said CNBC’s chief market strategist.Fast money“On Monday.” Ultimately, you have to have money to buy things, to do things, and to invest in things. And the road to funding availability has been largely closed since the beginning of the year. “

In this week’s memo, Dwyer warns that the Federal Reserve is “substantially under pressure” to reduce inflation by curbing demand. He argues that the economy is at the pinnacle of interest rate spikes reminiscent of Paul Volcker’s term as Fed chairman.

“The debt to GDP during the Volcker era was low across generations,” Dwyer said. “That is, debt to GDP wasn’t close to today’s problem. Debt to GDP is up to 138% for generations, so if you’re adopting and closing a leveraged economy, that’s not the case. “

on monday, S & P 500 Lost 4%, Closed on bear market territory..High tech heavy Nasdaq 5% decrease, Dow This is the first time I have dropped 876 points and scored more than 600 points for 3 consecutive days.

Fed inflation struggle to exacerbate market turmoil: Canaccord’s Dwyer

Source link Fed inflation struggle to exacerbate market turmoil: Canaccord’s Dwyer

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