(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.
“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.
By Kevin Simauchi
