Economics
Guggenheim's Minerd Says Fed Making Economy More Vulnerable
- Fed signals rates on hold through 2019, cites growth worries
- Corporate leverage will keep rising, already high: Minerd
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The Federal Reserve’s U-turn on policy is stoking systemic vulnerabilities in the U.S. economy and now is a prudent time for investors to take profits, according to Guggenheim Partners’ Scott Minerd.
A surprise move by the central bank to forecast no change to interest rates for the remainder of this year will increase the excesses in corporate America, which is already highly leveraged, and expose the economy to a higher chance of future shocks, he told Bloomberg TV.