“The Federal Reserve government does not want to waste money, it just wants to eliminate free money,” said John Stoltzfus, a military expert.

“Free money is bad in our minds because it encourages all kinds of ideas, it promotes economic classes .. and it creates economic instability,” added Oppenheimer, an economist.

Stolttzfus’ comments come after last month’s performance on the job market. Market regulators see the recently published news as a ‘clear’ signal for the Fed to keep inflating aggressively in order to reduce inflation.

Chairman of the US Federal Reserve Board Jerome Powell testifying before the House Financial Services Committee in Washington, US, June 23, 2022. REUTERS / Mary F. Calvert

Chairman of the US Federal Reserve Board Jerome Powell testifying before the House Financial Services Committee in Washington, US, June 23, 2022. REUTERS / Mary F. Calvert

“It appears that July will be another 75 [bps], based on the unemployment rates we have today. It looks like the economy could take over, ”he said.

Stoltzfus – known as one of the biggest bulls on Wall Street – has recently dashed its S&P 500 target. He and his team reduced their benchmark index prediction to 4,800 from 5,330. Last week, the S&P 500 (^ GSPC) closed its first half of the year since 1970.

“We have a huge inflation rate, a 40-year high … so if you look at it, and how the money will go to meetings,” Stoltzfus said. “At 4800 means a year worthless.”

The strategist is still bullish on US stocks, and buyers.

“A buyer in the US when times are difficult, removes the laundry, looks at the money behind the car seat, behind the sofa, and spends a lot of money,” he said.

Ines is a Yahoo Finance market reporter. Follow him on Twitter at @ines_ferre

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