NewsHK
The current bull market is unlikely to be ended by Federal Reserve rate hikes under Kevin Warsh, according to an analysis that points to past tightening cycles as a guide.
If Warsh moves to raise rates, equities may in fact gain ground — a dynamic that complicates any strategy relying on the mere threat of hikes to cool markets.
The historical record, in short, does not flatter the bear case.
The Warsh Rate-Hike Calculus Warsh may be banking on deterrence: the possibility that signalling a willingness to hike is sufficient to restrain risk appetite without ever having to act.
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