Stocks rise as bond market smells of Fed ‘finishing point’ – SkyBridge’s Anthony Scaramucci

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SkyBridge Capital founder Anthony Scaramucci said on Tuesday that the recent rebound in equities came as signals from the bond market suggested the Federal Reserve was reaching the “end point” of its interest rate hikes.

“The bond market feels we’re coming to the end of the Fed rate hikes and I think that’s why you’re seeing a takeoff in those markets,” the former administration staffer told CNBC. Trump.

Scaramucci argued that recent activity in the TIPS market, which tracks the price of Treasury inflation-protected instruments, indicates a drop in investors’ expectations for long-term inflation. He argued that the market’s implied expectations for long-term inflation have retreated towards the Fed’s 2% target.

The SkyBridge founder added that policymakers would not want the figure to fall aggressively below 2% as it could open the door to a potential “deflationary crisis”, which he called “one of the worst things that can happen.”

Regarding future Fed policy, Scaramucci predicted that the central bank would likely raise interest rates “one more time.” He added that the stock market would likely rise after another 75 basis point rate hike because “that’s really the finishing point.”

Regarding the crypto markets, Scaramucci said action in the asset class has largely become risky/risky trading in recent months. He argued that further regulatory changes were needed to ensure long-term growth in the sector.

“Until the SEC, CFTC, and the Legislature move to create more regulatory clarity around crypto, it appears to be conjoined with the Nasdaq and other risky assets,” a- he declared.

“At some point I predict you will have decoupling, but it won’t be until you have regulatory clarity,” he added.

For another perspective on today’s market, see why Ray Dalio no longer thinks “money is trash.”

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