Halister News

(Bloomberg) -- Fed’s “quantitative tightening” could cause some heightened volatility since its impact on the economy “remains largely unknown,” Kully Samra, Charles Schwab’s U.K. managing director, writes in note.  

• “Robust” data and solid corporate earnings should enable bull market to continue; however, political, fiscal and monetary uncertainties pose risks

• Fed could be pushed to act more aggressively than consensus expectations, given tight labor and housing markets and the potential for inflation to “surprise on the upside”
• Policy makers are playing “internal cat and mouse game,” with some using low inflation as reason to delay further tightening and others wanting to stay on the path of normalization

To contact the reporter on this story: Vivien Lou Chen in San Francisco at vchen1@bloomberg.net To contact the editors responsible for this story: Boris Korby at bkorby1@bloomberg.net Elizabeth Stanton