Wall Street Says Far More Pain Needed Before ‘Fed Put’ Kicks In
- BlackRock, HSBC say $2.3 trillion stock tumble not enough
- Eurodollar markets lower wagers on interest-rate increases
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Besieged global investors swimming in a sea of red are consumed with one magic number: the strike price of the so-called Powell Put -- or how much more blood stock markets need to shed before spurring the Federal Reserve to temper its hiking plan.
For now, a chorus of Wall Street voices say the $2 trillion tumble in U.S. equities this month has yet to tighten financial conditions to levels that would spark a dovish monetary offset. That’s even as traders in eurodollar markets lower wagers on interest-rate increases next year.