Fisher reports from inside the FOMC: it’s getting more hawkish and will hike interest rates sooner than expected. Markets are in denial. Not going to be pretty.
Investors’ forecasts of rate hikes are well below those by Fed governors. “And it wouldn’t be good” if the gap gets closed “with great rapidity,” frets Fed Governor Lacker.
The world’s largest wealth manager is “very worried” about “the lack of liquidity” that could wreak havoc during the sell-off. It reduces risk “over the full spectrum of assets.”
