The bond market is doing the Fed’s job, and that could be good news for stocks, says Morgan Stanley strategist
Summary
Rising bond yields, higher gas prices, and a stronger dollar are tightening financial conditions across the United States. According to a Morgan Stanley strategist, these market shifts are effectively doing the Federal Reserve's work by cooling the economy. Consequently, further interest rate increases might become unnecessary, which could create a favorable environment for the stock market.
A stronger dollar, higher bond market yields and elevated gas prices are already tightening financial conditions in the U.S. to the point that Kevin Warsh may not even need to hike rates.
Source: Read the full story at MarketWatch.com - Top Stories
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