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Leuthold’s Paulsen Says Markets Should Ignore Fed as Financial Conditions Ease

  • Inflation’s fall means further tightening not needed, he says
  • ‘The debate on inflation has peaked -- I think that’s over’
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Jim Paulsen, chief investment strategist at The Leuthold Group, says “sluggish” US economic momentum and recent positive inflation data are behind his call for the Federal Reserve to slow its path of interest-rate hikes. “I think the case for additional Fed tightening is rapidly dissipating,” Paulsen says on “Bloomberg Surveillance.”Source: Bloomberg

Veteran investor Jim Paulsen says stop worrying whether the Federal Reserve is done raising interest rates because the tightening cycle for financial assets has already ended.

“I don’t really care what the Fed is going to do because the Fed isn’t driving this ship,” the chief investment strategist at The Leuthold Group said in a Bloomberg Television interview Thursday. “If I look at what’s happening, we’re already into a brand new easing cycle right now. Do you want to miss an easing cycle?”