Excerpt from Yahoo Finance quoting DataTrek co-founder Nick Colas:
… “And the Fed is unlikely to be deterred from moving in this more hawkish direction even in the wake of recent volatility across markets, some strategists suggested.
“Until we get a further selloff in risk assets, the Fed will simply not be convinced that raising interest rates and reducing the size of its balance sheet in 2022 will more likely cause a recession rather than a soft landing,” Nicholas Colas, co-founder of DataTrek Research, wrote in a note on Monday.
“Either outcome would dampen inflation, of course, which is why 10-year Treasury yields have stopped climbing,” he added. “But only a soft landing would allow public companies to continue to post strong earnings. The risk of a hard landing is why U.S. large caps are under so much stress”…
Read the full article here on Yahoo Finance!