Reported 13 days ago
According to economist Steven Blitz, a surge in U.S. economic growth could pose significant risks to the stock market by reigniting inflation and prompting an unexpected increase in Federal Reserve interest rates. Blitz warned of a 'no landing' scenario, suggesting that prolonged low rates could result in economic overheating and a rebound in inflation, prompting the Fed to raise rates sooner than anticipated. He believes that the Federal funds rate should be around 4%, contrary to market expectations of cuts, as current economic indicators suggest resilience rather than the need for aggressive monetary easing.
Source: YAHOO