Chanticleer
Druckenmiller says investors still don’t get the Fed’s big problem
Wall Street’s jump following the decision to hold interest rates proves Stanley Druckenmiller’s point: equity investors don’t appreciate the impact of higher rates on the US economy.
The joyous reaction on Wall Street to some rough US economic data and hints of dovishness from Federal Reserve chairman Jerome Powell as he kept US interest rates on hold is a reminder of the eternal optimism of equity investors.
But for Wall Street titan Stanley Druckenmiller, the 1 per cent rise in the S&P 500 and the 1.6 per cent jump for the Nasdaq, shows sharemarkets just aren’t appreciating what a world of much higher interest rates and government debt really means.
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