Chief Market Strategist Ellen Hazen, CFA, appeared on Yahoo Finance to discuss Fed consistency, inflation, interest rates, and the recent market volatility.
“The Fed has been very consistent over the last four weeks, speaker by speaker. They are going to keep interest rates higher for longer as long as necessary to tame inflation. That was culminated in Chair Powell’s speech at Jackson Hole. So despite the fact that inflation has softened a bit, from 9.1 down to 8.5, we don’t think that’s sufficient evidence for the Fed to begin to soften their stance. We’re expecting Lael Brainard, as well as others, to remain quite hawkish.”
“We think the bond market is closer to pricing in [a longer, higher interest rate environment] than the stock market is. The stock market is trying very hard to be optimistic. However, we think that we’re likely to see continued volatility as the realization continues to grind into investors that rates will stay higher for longer.”
To watch the full segment click here.