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DeBusschere Says S&P Faces Loss of August Gain on Fed Jawboning

  • Loose financial conditions raise risk of hawkish Powell: 22V
  • S&P 500 has jumped 17% from mid-June low despite rate hikes

The Federal Reserve could wipe out all of this month’s market gains by strongly reminding investors that it is hell-bent on tightening monetary policy in the face of soaring inflation, according to Dennis DeBusschere.

The 22V Research founder said while the early part of the S&P 500 Index’s recovery from its June 16 low was due to waning concerns about a deep recession, gains since then have come from easing financial conditions, which the Fed can easily put a stop to.