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WATCH: Powell Says Fed Is Prepared to Increase Pace of Hikes If Needed
Federal Reserve Chair Jerome Powell’s testimony ripples across markets, bond investors double down on recession bets and tensions simmer between the US and China. — Kristine Aquino
After Fed Chair Powell’s testimony to US lawmakers roiled markets globally, investors are taking stock of the fallout. There’s “a reasonable chance” the US central bank will have to raise its key rate to 6% and keep it there for some time, Rick Rieder, chief investment officer for global fixed income at BlackRock said. Meanwhile, Ken Griffin, the billionaire founder of Citadel and Citadel Securities, said the setup for a US recession is unfolding and that the Fed needs to raise rates further to combat “traumatic” levels of inflation.