Bite of higher rates gaining traction every day: KBW CEO Michaud
A major financial services CEO warns the economy hasnt fully absorbed higher interest rates yet. Thomas Michaud, who runs Stifel company KBW, notes theres a delayed reaction in the marketplace from the last hike — calling a 25 basis point move at 5% a very different situation than off a half percent. kaugnay na balita sa pamumuhunan “This is getting to be the real deal at the moment because of the level of rates,” he told CNBCs “Fast Money” on Wednesday. “The bite of these higher rates is gaining traction almost every day.” Michaud delivered the call hours after the Federal Reserve decided to leave interest rates unchanged. It comes after ten rate hikes in a row. The Fed signaled two more hikes are ahead this year. Michaud expects one to happen in July. However, he questions whether policymakers will raise rates a second time. “Trying to deliver a new message with these dots is not what I‘m willing to hang my hat on from what I see happening in the economy,” he said. “The economy is slowing. So, I think we’re near the end of this rate increase cycle.” He lists interest rate sensitive areas of the economy already in a recession: Office space in urban