“An interest rate cut is as likely as a hike for the Fed’s next move; Current Fed position is to hold, and doesn’t believe we should consider hikes in the near future, but can no longer rule them out if inflation doesn’t cool soon; Hikes will be especially necessary if inflation expectations become unanchored.”
“Breadth of April consumer price increases is concerning.”
“Inflation will be the driving force in future policy decisions.”
“The labor market is stabilizing, unemployment is low.”
“While I still harbor concerns about the strength of the labor market in the United States, because of the growing length of the conflict, I have become more concerned that higher energy prices may have a lasting effect on inflation.”
“Based on this recent data, I would support removing the “easing bias” language in our policy statement to make it clear that a rate cut is no more likely in the future than a rate increase.”
“I can no longer rule out rate hikes further down the road if inflation does not abate soon, and that is especially true if measures of inflation expectations, some of which have risen lately, show signs of becoming unanchored.”
Doug Kass is a world-renowned hedge fund manager with decades of experience and success navigating through some of the most turbulent periods in market history. He is known for his time-tested analytical skills and ability to look past the current noise and herd mentality.
On TheStreet Pro, Kass provides frequent market commentary and investing ideas for active investors throughout each trading day in Doug’s Daily Diary. He also serves as president of Seabreeze Partners Management Inc. Previously, he served as a senior manager at Omega Advisors, a $6 billion investment partnership. He co-authored a book with Ralph Nader and the Center for the Study of Responsive Law called “Citibank: The Ralph Nader Report” and can be found as a guest host on CNBC's "Squawk Box."
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