The Fed's 2% inflation target is an 'absolute trap': 40-year market vet

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The Fed's 2% inflation target is an 'absolute trap': 40-year market vet
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The Fed pursuing 2% inflation is an 'absolute trap' for the economy, 40-year market veteran says

"If credit drops that much, we've got a real, huge economic problem on our hands. The market is telling you, in terms of forward yield curves, that they expect the Fed to make a mistake," Knapp said, pointing to bond market futures Some economists have argued that the Fed needs to press forward with rate hikes, given that inflation is still well-above the Fed's target, clocking in at 5% in March.

Inflation will drop to 3% by June, Knapp predicted, agreeing with other market commentators who say the Fed shouldInvestors are pricing in an 86% chance the Fed will hike rates another 25 basis-points at the end of the policy meeting on Wednesday, per the

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