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On today’s Intelligent Money Minute, we’ll interview Ed Peters on how the Fed is on slippery ice. During this episode, Ed explains the Fed’s reasoning behind potentially raising interest rates due to the recent inflationary climate. The Fed wants to raise interest rates in a way that doesn’t hurt the economy with the hope that supply chain issues resolve themselves.
As Ed mentioned, the Fed would have to take a very hawkish stance to raise rates above inflation (like Volker did in the late 70s). That probably isn’t on their agenda, but they do want to take their foot off the gas, but not necessarily hit the brakes.
On our next podcast with Ed, we’ll talk about whether this is a transitory inflationary environment, a permanent inflationary environment, or some combination. Be sure to subscribe to our podcasts so you can stay informed.
Ed Peters Bio
Ed Peters is First Quadrant’s Managing Partner. In this role, Ed establishes the firm’s strategic direction, develops firm-wide initiatives, and chairs the Executive Leadership Team and the Management Operating Committee. Ed also contributes to First Quadrant’s research efforts, with a particular emphasis on market states, and manages the firm’s long-only multi-asset strategy. Prior to joining First Quadrant in 2008, Ed worked at PanAgora Asset Management, at various times serving as equity portfolio manager, Director of Tactical Asset Allocation, CIO of Macro Investments, and CIO. Other past work experience includes Interactive Data Corporation and Mutual Benefit Life. Ed holds an MBA from Rutgers University. He has published articles in multiple investment journals, as well as three books.