Financial expert cautions Fed's rate hike 'experiment' will have 'unintended' consequences
Grant's Interest Rate Observer founder and editor Jim Grant weighs in on the Federal Reserve's two-day meeting and U.S. recession probability.
As Federal Reserve Chairman Jerome Powell prepares to announce the central bank’s next rate move, one Fed watchdog and financial expert warned of «the final consequences» coming for U.S. markets.
«The tension is between the expectation of a resumption in the stock market, a bull market on the one hand, and on the other, the structure of things that were brought about by a dozen or so years of artificially low interest rates,» Grant’s Interest Rate Observer founder and editor Jim Grant said Wednesday on "Mornings with Maria."
«Throughout the economy in odd spots,» he continued, «there are already surfacing adverse consequences of this really long, and I think ill-advised, experiment in rate suppression.»
The Federal Reserve is widely expected to deliver another interest rate hike on Wednesday, resuming its campaign to jack up borrowing costs and crush inflation after a brief pause in June.
FORMER FED PRESIDENT SAYS HE WOULDN'T RAISE RATES ‘IF I WERE SITTING IN MY OLD SEAT’
The projected quarter-percentage point hike would set the federal funds rate between 5.25% to 5.5%, further restricting economic activity as the borrowing costs for homes, cars and other items march higher.
Ahead of the Federal Reserve’s July rate announcement, Grant’s Interest Rate Observer founder and editor Jim Grant warned of «unintended consequences» on markets due to an «ill-advised» campaign on «Mornings with Maria.» (Fox News)
It would mark the highest rate since 2001 and the 11th increase in nearly a year and a half.
Grant explained how he advises clients when markets buoy in hopes the central bank
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