"How Much Will the Fed Raise Interest Rates This Week?" Interview with Tom Samuelson in International Business Times

Sep 20, 2022 8:30:15 AM

Tom-1-1"How Much Will the Fed Raise Interest Rates This Week?"– Interview with Vineyard Global Advisors Chief Investment Officer Tom Samuelson, CFA, CMT 

Vineyard Global Advisors CIO Tom Samuelson, CFA, CMT, joined esteemed author Panos Mourdoukoutos, Ph.D. of International Business Times to share his perspective on the Fed's precarious position while raising interest rates to fight inflation.

With data from the World Bank and international shipping companies like FedEx reporting declining numbers, signs of a global recession abound. Tom discusses potential scenarios the Fed might adopt in its ongoing battle to quell inflation. The question remains, how much is too much? An overly aggressive hike could push us into a recession, and an anemic response could cost the Fed credibility in the fight against inflation.

In This Article We Explore...

Can the Fed Keep Us Out of a Recession? 

The Fed has aggressively raised interest rates. With inflation at 8.3%, it’s expected the Fed will raise an additional 200 basis points.  They’re going to take interest rates from two and one half to four- and one-half percent, increasing the probability of a recession.

How Would Rate Hikes Affect the Equities Markets?

Samuelson said wall street analysts still expect earnings to rise 1% this year, from $208.21 per share to $209.76 per share. "We have been expecting downward earnings revisions this year as the deteriorating macro environment has been flagged by many leading indicators, including an inverted yield curve, widening credit spreads, and deteriorating stock market breadth," Samuelson said.

Read the Full Article Here...

Author: Panos Mourdoukoutos, PhD, International Business Times

Guest Contributor: Tom Samuelson, CIO of Vineyard Global Advisors

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