MarketWatch/Steve Goldstein/9-8-2022
“’The markets are pricing derivative contracts to win if the fed funds rate peaks near 3.75% in the spring of 2023, with the embedded implication that rate cuts will soon follow. I will take the other side of that trade,’ says [Harley] Bassman, who created the MOVE index measuring interest rate volatility during a storied career at Merrill Lynch.”
USAGOLD note: In short, Bassman is making a point similar to the one we’ve made here in the past. The Fed might be forced to raise rates far beyond current projections based on an inflation rate that proves much stickier than most now believe. He foresees, natural gas prices in Europe and the US converging. “I can assure you,” he says, it will not be the euro prices collapsing.” That light at the end of the tunnel? It’s a train……
