Stephen Innes, Managing Director at SPI Asset Management, has issued a cautionary warning to the Federal Reserve. He emphasized that the Fed needs to make concessions in its rate hike strategy to avoid the risk of triggering a currency crisis.
Since last September, the Fed has maintained steady interest rates for the sixth consecutive period. However, the sustained high-rate policy has not been without consequences. One of the significant impacts has been a sharp decline in the Japanese yen's exchange rate, highlighting the broader economic implications of prolonged rate hikes.
Innes suggests that without adjustments to the current rate strategy, there could be further destabilization in the currency markets, which may have far-reaching effects on global economic stability.
Reference(s):
SPI Asset Management: Fed needs to make concessions in rate hikes
cgtn.com
