Economics
Guggenheim’s Scott Minerd Says Fed Should Hike Rates, Not Cut Them
- Sees Fed easing policies making next economic slump worse
- Market is currently pricing easing this week as a certainty
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The Federal Reserve should raise interest rates when it meets this week -- rather than cut them -- to keep the economy from overheating, according to Scott Minerd, chief investment officer of Guggenheim Partners.
“By almost every measure policy makers should be considering another rate hike in anticipation of potential economic overheating from looming limitations on output,” Minerd, whose firm oversaw more than $270 billion as of June 30, wrote in a commentary posted on the firm’s website Monday. “Instead, debate has been focused on the need to take preemptive action to avoid a potential slowdown.”