Citadel Says Warsh Will Push Inflation to 2% as Investors Underprice Risk-Asset Drag
Updated
Updated · Bloomberg · Jun 29
Citadel Says Warsh Will Push Inflation to 2% as Investors Underprice Risk-Asset Drag
2 articles · Updated · Bloomberg · Jun 29
Summary
Citadel Securities told clients investors are underestimating how aggressively Fed Chair Kevin Warsh will act to return inflation to the central bank’s 2% target.
Nohshad Shah, the firm’s head of EMEA fixed-income sales, said falling oil prices do little to weaken the case for further rate hikes because underlying inflation pressures remain elevated.
That stance points to a tougher Fed backdrop for risk assets, with markets potentially misjudging both the persistence of restrictive policy and its impact on valuations.