Infrastructure Capital Advisors predicts Federal Reserve will slow rate hikes
What happened
Jay Hatfield, CEO of Infrastructure Capital Advisors, stated that the firm expects the Federal Reserve to implement no more than one additional rate increase. He noted that core CPI is declining and that the housing sector is experiencing recessionary conditions. Infrastructure Capital Advisors also reduced its valuation multiple from 23 to 20.
Why it matters
Hatfield argued that investors may be anticipating too much tightening from the Federal Reserve. He suggested that continued spending by hyperscale technology companies could offset economic weakness, potentially leading to slower U.S. economic growth rather than a deep downturn.
Who's involved
- FEDThe Federal Reserve, whose policy decisions are the subject of the prediction.
- Federal Open Market CommitteeThe Federal Open Market Committee, the committee responsible for carrying out the Federal Reserve's policy.
- Jerome PowellJerome Powell, the formal Chair and leader of the Federal Reserve.
- Christopher WallerChristopher Waller, a Governor of the Federal Reserve providing expert counsel.
- CongressCongress, which established the Federal Reserve and maintains oversight.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- U.S. TreasurySpeculative
The U.S. Treasury market could see changes in demand as Infrastructure Capital Advisors is actively purchasing U.S. Treasuries.
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The entities involved
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FED
business
Related events
- Potential rate hikes are highly likely, impacting the mortgage market.
- Investor fears of rate hikes caused a market decline, driven by strong job gains and BLS data.
- Mortgage rates are influenced by Fed policy.
- Robin Brooks discusses how inflation data drives Fed policy decisions regarding rising interest rates and their impact on future profits.
- Bill Campbell and Moran discussed the implications of a potential Fed rate hike on borrowing costs and market selloffs.