Moody's economist warns Fed silence risks economy

MacroDigital Finance Impact 4
โดย Yahoo Finance·US·Read original
Summary · why it matters

Moody's Analytics chief economist Mark Zandi warned that the Federal Reserve's reluctance to provide forward guidance is a serious mistake that could trigger a market sell-off and put the broader economy at risk. Fed chair Kevin Warsh wants the central bank to say less about where the economy is headed, and after the July 29 meeting where officials voted 9-3 to keep rates unchanged in the 3.5% to 3.75% range, Warsh declined to say what conditions would prompt a hike. Zandi said the lack of even a modicum of forward guidance will leave investors repeatedly wrong-footed, causing more volatility in bond and stock markets, a larger term premium, rising long-term interest rates, and a wobbly equity market. Bank of America economists also warned the Fed is facing a growing credibility problem, with traders potentially treating it like an emerging market central bank. The 30-year Treasury yield hit 5.22% on July 29, its highest since 2007, and investors now price a 30.8% chance of a quarter-point hike by year-end, with JPMorgan saying a September hike is a real possibility depending on data.

Impact on stocks 4

Digital Finance & Tokenization▲ · 1 stocks
JPMorgan Chase & Co
JPM
± MixedMonetaryrelevance

JPMorgan mentioned as saying September hike is a real possibility, but no direct impact on the bank.

Others▲ · 3 stocks
％Effective Federal Funds Rate
EFFR
▲ PositiveMonetaryrelevance

Fed's lack of forward guidance and potential hikes could lead to higher policy rates, raising the effective federal funds rate.

© 2026 MarketDXNews