Stock market will turn when Fed’s ‘hard landing’ hits: Hugh Johnson
Hugh Johnson Advisors Chief Economist Hugh Johnson and Meridian Equity Partners Senior Managing Partner Jonathan Corpina discuss how investors should play Fed rate hikes on ‘The Claman Countdown.’
As the Federal Reserve hikes interest rates to the highest level since the 2008 financial crisis, the White House is trying to navigate a way to combat inflation without sending the country into a full-scale recession.
"I believe there is a path through this," Treasury Secretary Janet Yellen told the Atlantic Thursday. "I think of a full-scale recession as a period when there's excessive unemployment. You don't have a strong labor market. We have one of the tightest labor markets right now."
Yellen predicts that inflation will finally be under control next year.
"There are risks. The Russian invasion of Ukraine hasn’t come to an end. We are seeing Putin weaponize oil and gas," Yellen said. "We will remain vulnerable to supply shocks."
YELLEN SAYS FED CAN TAME INFLATION WITHOUT CRUSHING LABOR MARKET