/perspectives/media/the-fed-is-being-held-hostage-by-the-market

The Fed Is Being Held Hostage By the Market

Scott Minerd, Chairman of Investments and Global CIO, calls in to Bloomberg TV to discuss monetary policy, trade, and the implications of negative global yields.

August 13, 2019

 

Key takeaways:

  • With inflation nearing policy objectives, the Federal Reserve’s primary objective is avoiding a recession, which it is likely to do by any means necessary.
  • Central banks around the world will follow suit, and record levels of negative yields are not likely to abate.
  • The Fed is now effectively committed to cutting rates by another 50 basis points this year. The question is when.
  • If the Fed acted swiftly and communicated effectively it would reassure the market and longer term rates would rise in anticipation of increased inflation and growth.
  • The 10-year Treasury note could slip to 1.4 percent in the near term, but we expect longer rates rise later in the summer.


Read the CIO Outlook: The Fed's Sugar High

 


FEATURED PERSPECTIVES

July 29, 2020

China Matters More Than Ever

Cooperation and understanding between China and United States is vital as global economic and environmental challenges mount.

July 27, 2020

A Payroll Tax Holiday Will Put the U.S. Back to Work

The pandemic creates a good opportunity to make Social Security more sustainable.

June 08, 2020

The Fed’s Roadmap

The Fed has increasingly unorthodox policy options if the economy remains mired in a protracted downturn.


VIDEO

Fourth Quarter 2019 Fixed-Income Outlook 

Fourth Quarter 2019 Fixed-Income Outlook

Brian Smedley, Head of the Macroeconomic and Investment Research Group, and Portfolio Manager Adam Bloch share insights from the fourth quarter 2019 Fixed-Income Outlook.

Core Fixed-Income Conundrum 

Solving the Core Conundrum

Anne Walsh, Chief Investment Officer for Fixed Income, shares insights on the fixed-income market and explains the Guggenheim approach to solving the Core Conundrum.







Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objective, risks charges, expenses and the other information, which should be considered carefully before investing. To obtain a prospectus and summary prospectus (if available) click here or call 800.820.0888.

Investing involves risk, including the possible loss of principal.

Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management. Securities offered through Guggenheim Funds Distributors, LLC.

© Guggenheim Investments. All rights reserved.

Research our firm with FINRA Broker Check.

• Not FDIC Insured • No Bank Guarantee • May Lose Value

This website is directed to and intended for use by citizens or residents of the United States of America only. The material provided on this website is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation. Investing involves risk, including the possible loss of principal.