Guggenheim’s Minerd Sees No Fed Pivot, Expects Market ‘Damage’

(Bloomberg) — On the heels of the Federal Reserve announcing another 75-basis-point rate hike, Scott Minerd, global chief investment officer at Guggenheim Investments, said that the move was not a sign that the central bank will slow its campaign to reach price stability.

Most Read from Bloomberg

Powell Sees Higher Peak for Rates, Path to Slow Tempo of Hikes

Musk Plans to Eliminate Half of Twitter Jobs to Cut Costs

Lottery Winner Keeps $30 Million Jackpot Secret From Wife and Child

How a Mysterious China Screenshot Spurred $450 Billion Rally

Russia Resumes Ukraine Grain-Export Deal in Abrupt Reversal

“I would not call this a pivot today,” Minerd told Bloomberg Television’s Lisa Abramowicz, Tom Keene and Jonathan Ferro. “I think that the slowing of tightening is not an easing.”

Though Fed officials have said that they will take into consideration the “cumulative tightening of monetary policy,” Minerd said that the “artful” language was a way for central bank officials to get investors focused on the terminal rate and avoid adding more stress to the economy.

“The Fed is saying, ‘Hey, let’s be careful, and understand that we have to get to the destination,’ and before they get to the destination, it is likely that they will create a lot of damage to the economy and financial markets,” Minerd warned.

Most Read from Bloomberg Businessweek

Yeezy Roller Coaster Ended With Two-Minute Phone Call at Adidas

These Five Women Are Helping Doctors Crack the Long-Covid Mystery

Fast Fashion Waste Is Choking Developing Countries With Mountains of Trash

Fed’s Inflation Fight Is Becoming a Battle Over Jobs, Too

How Takeda Developed Its Dengue Vaccine After Decades of Setbacks

©2022 Bloomberg L.P.