Guggenheim Partners' Global Chief Investment Officer Scott Minerd speaking on Tuesday from the sidelines of the World Economic Forum meeting in Davos, Switzerland.

Reuters with the info:

  • "The neutral rate is probably lower than where the Fed thinks it is ... by June when the Fed funds rate is expected to be about 1.75%, any tightening beyond that would be restrictive,"

Cites a slowing economy and deteriorating market fundamentals. Said market participants and policymakers alike have underestimated the impacts of shrinking the central bank's balance sheet while simultaneously hiking rates:

  • thinks a recession can be avoided if the Fed pivots to a more accommodative stance by the end of the year, barring which, he anticipates one in 2023.
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