Politics

US In ‘Largest Bubble Of Our Lifetime,’ Investment Expert Warns

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Eddie Ghabour, the co-founder of Key Advisors Group LLC, warned on Wednesday that the U. S. is in the “largest bubble of our lifetime,” and it’s going to burst as the Federal Reserve is “going to suck liquidity out of the system.”

Ghabour made the prediction on “Varney & Co.” one day after Federal Reserve Chairman Jerome Powell reiterated his commitment to curbing the highest inflation in decades, indicating the central bank will raise interest rates as high as necessary in order to tame consumer prices.

“What we need to see is inflation coming down in a clear and convincing way, and we’re going to keep pushing until we see that,” he said during a Wall Street Journal live event. “If that involves moving past broadly understood levels of neutral we won’t hesitate at all to do that.”

Fed policymakers hiked the benchmark federal funds rate by a half point earlier this month, and Powell has all but promised that two, similarly sized increases are on the table at the forthcoming meetings in June and July. He echoed that sentiment on Tuesday as the Fed races to catch up with runaway inflation and bring it back down to the 2% target.

“This was the worst-case scenario I was hoping was not going to happen,” Ghabour told host Stuart Varney on Wednesday.

“The bottom line is, Powell made it very clear yesterday that they [the Fed does not] don’t care about the market,” he continued.

“They are going to try to get inflation down and there’s nothing they can do in regards to rates, that is, going to bring fuel costs down or food costs down.”

Earlier this month, the Labor Department revealed that inflation cooled on an annual basis for the first time in months in April, but rose more than expected as sup… (Read more)

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