Veteran Trader Peter Brandt Urges Federal Reserve to Raise Interest Rates Another 100 Basis Points

Veteran trader Peter Brandt has urged the U.S. Federal Reserve to enactment hawkish and summation involvement rates different 100 ground points to support the nation’s wealth. He stressed that determination is thing much destructive to wealthiness than inflation, emphasizing that the Fed “must support their feet to the floorboard to forestall a re-occurrence of inflationary pressures.”

Peter Brandt’s Advice for the Federal Reserve

Veteran trader Peter Brandt has urged the Federal Reserve to stay hawkish and summation involvement rates by different 100 ground points. Brandt has been a futures and FX vocation trader since 1975. He is simply a chartist and the writer of the Factor Report. He trades a assortment of markets, including Dow futures, bonds, corn, crude oil, European wheat, Osaka Dow, U.S. dollar, and sugar.

“The U.S. Fed was negligent for not aggressively raising rates successful aboriginal 2021,” helium tweeted Thursday. “Traders knew this, but the Ph.D.s had their heads up their butts.” He added: “But now, I congratulate the Fed arsenic it wants to stay hawkish. The marketplace is acrophobic astir unemployment and imaginable recession. Those are the slightest of our worries.”

Noting that “higher unemployment is the slightest of our worries,” Brandt opined:

There is NOTHING much destructive to wealthiness than inflation. The Fed indispensable support their feet to the floorboard to forestall a re-occurrence of inflationary pressures. While the Fed was dormant astatine the power successful 2021, expanding rates different 100 ground points would bash wonders to support the nation’s wealth.

In March, Brandt tweeted that radical who criticized the Federal Reserve for risking a recession due to the fact that of complaint hikes “know not of what they speak.” He believes that a recession would beryllium beneficial successful the agelong term, claiming that “Only those who person lived with rampant ostentation (including U.S. successful 1970s) tin genuinely recognize the destructive interaction connected wealthiness of inflation.”

Emphasizing that “The Fed should beryllium slammed” for not raising involvement rates by 300 ground points successful aboriginal 2022, helium stressed:

The harm to idiosyncratic wealthiness due to the fact that of ostentation is acold much unsafe than a recession.

The Federal Reserve paused raising involvement rates during its Federal Open Market Committee (FOMC) gathering successful June aft 10 consecutive complaint increases. Fed Chair Jerome Powell has signaled more complaint hikes this twelvemonth but astatine a “moderate pace.”

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