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U.S. markets fear recession and see interest rate cuts ahead as Fed loan survey looms

Market Snapshot Last Updated: May 7, 2023 at 12:49 p.m. ET First Published: May 7, 2023 at 12:01 p.m. ET ‘The last two rate hikes were nuts,’ says Edward Yardeni, president of Yardeni Research The Federal Reserve seems to be aiming for “Powell’s plateau,” meaning Fed Chair Jerome Powell could keep its benchmark interest rate

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Market Snapshot

‘The last two rate hikes were nuts,’ says Edward Yardeni, president of Yardeni Research

The Federal Reserve seems to be aiming for “Powell’s plateau,” meaning Fed Chair Jerome Powell could keep its benchmark interest rate at the current level for a while, according to Yardeni Research.

MarketWatch photo illustration/Getty Images, iStockphoto

Some investors see a hard landing for the U.S. economy this year resulting from the sharply higher interest rates engineered by the Federal Reserve to quell inflation and tighter credit conditions in the wake of regional bank sector stress, while others note that consumer spending and employment growth remains healthy, but the Federal Reserve’s loan officer survey due this week may provide more clarity on which view is more accurate.

“The last two rate hikes were nuts, to be blunt,” said Edward Yardeni, president of Yardeni…

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