Dan Greenhaus, chief strategist at Solus Alternative Asset Management, and Shannon Saccocia, chief investment officer of NB Private Wealth, joined ‘Closing Bell’ to discuss the markets, the Fed, and their market outlook.
Greenhaus said that he is ‘cautiously optimistic’ about the markets, but he is ‘not out of the woods yet.’ He said that the Fed is ‘still behind the curve’ on inflation, and he believes that the central bank will need to raise interest rates more aggressively than it is currently doing.
Saccocia agreed with Greenhaus’ assessment of the markets. She said that she is ‘concerned’ about the Fed’s ability to control inflation without causing a recession. She said that the Fed is ‘walking a tightrope’ and that it could easily make a mistake.
Greenhaus and Saccocia discussed a number of other topics, including the impact of the war in Ukraine on the global economy, the upcoming midterm elections, and the potential for a recession. Greenhaus said that he believes the war in Ukraine is ‘a major risk’ to the global economy. He said that the conflict could lead to higher energy prices and disruptions to global supply chains. Saccocia said that she believes the midterm elections could be a ‘wild card’ for the markets. She said that the outcome of the elections could lead to a change in government policy, which could have a significant impact on the economy.
Greenhaus and Saccocia also discussed the potential for a recession. Greenhaus said that he believes the odds of a recession are increasing. He said that the Fed’s aggressive interest rate hikes could slow down the economy and lead to a recession. Saccocia said that she is also concerned about the potential for a recession. She said that the economy is ‘very fragile’ and that it could easily be pushed into a recession by a number of factors, including the war in Ukraine, the midterm elections, or the Fed’s policy mistakes.
