The week’s financial landscape was mixed, with warnings of a debt crisis, bullish views on US stocks and concerns about the unemployment rate. The most important financial figures such as the ‘Bond King’ Bill Gross, global asset manager BlackRock IncAND JPMorgan Chase & Co CEO Jamie Dimon all gave their point of view.
Bill Gross predicts a looming debt crisis
Bill Gross, co-founder of PIMCO, drew parallels between the slow, destructive impacts of climate change and the United States’ $34 trillion debt crisis. Gross warned of the cumulative impact of an annual deficit of nearly $1.5 trillion, which he forecast could potentially fuel inflation. Read the full article here.
BlackRock bullish on US stocks
BlackRock, the world’s largest asset manager, upgraded its U.S. stock rating from “underweight” to “overweight.” They expect an imminent economic soft landing due to the success of the Federal Reserve initiative, which would be followed by the first interest rate cut since 2019. Read the full article here.
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Unemployment could double by the end of the year
Dominic Konstam, a strategist of Mizuho, expressed concern about a potential “hard landing” for the U.S. economy. He estimates the unemployment rate could rise to 6% or 7% by the end of the year, a significant increase from the current low of 3.7%. Read the full article here.
Peter Schiff criticizes the Federal Reserve’s inflationary policy
Economist Peter Schiff criticized Federal Reserve Chair Jerome Powell’s recent comments on the central bank’s inflationary policy. Schiff highlighted the perceived inconsistency in the application of the policy, where inflation above 2% for years is accepted, but going below that figure is not. Read the full article here.
Jamie Dimon raises the alarm about a potential global market “rebellion”.
Jamie Dimon, chief executive of JPMorgan Chase & Co, warned of a potential “rebellion” in global markets due to the escalation of US national debt. With the US debt-to-GDP ratio at around 120% and expected to reach 130% by 2035, Dimon highlighted the global implications of US debt. Read the full article here.
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