It’s a move that would likely cause panic on Wall Street.
But Wells Fargo Securities’ Michael Schumacher suggests the Federal Reserve is raising rates too slowly, telling CNBC’s “Fast Money” he would seriously consider a 150 basis point hike this week if he was chair Jerome Powell.
“The Fed knows what the destination is. So it’s got the funds rate now, the upper bound, is 2.5%. Very likely it gets to 4%-plus this year,” the firm’s head of macro strategy said on Tuesday. “Why not just rip off the band-aid. Let’s get there in one day. But of course, the Fed won’t do that.”
He acknowledges it would be a tough maneuver to pull off without violently shaking markets. The key is policymakers need to convince investors the historical jump in rates is frontloaded, according to Schumacher.
Continue reading Fed should hike interest rate rates 150 basis points: Wells Fargo on CNBC
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