The Fed Won’t Care About Stocks Selling Off Until There’s a Panic, Says Guggenheim’s Scott Minerd

Scott Minered Guggenheim
Scott Minered Guggenheim

The Fed won’t worry about stocks falling until panic takes over the markets, as it’s focused on curbing inflation, Guggenheim’s Scott Minerd said. 

In a Tuesday CNBC interview, Minerd said: “As long as the sell-off is orderly, [the Fed] are not concerned with the level of stock prices.” 

“The bottom line is until we see some amount of panic here or something that gets the central bankers concerned, they are just hell-bent to get inflation under control,” he added. 

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Minerd mentioned the likelihood of a so-called “Fed put” materializing — the point at which the Fed comes to the stock market’s rescue. Nonetheless, Fed Chair Jerome Powell has any interventions although stocks plummeted dramatically in recent weeks.

The Fed has minted it will keep on raising interest rates until inflation cools down. The Consumer Price Index soared by 8.6% in the year to May – the inflation benchmark’s fastest rate of increase since December 1981. The central bank responded with its first 0.75-basis-point hike since 1996.