world s biggest bond traders, and he was saying that you have got one or two choices. either the chancellor has to change his plan so they appear more credible, or the bank of england has to call an emergency meeting. you can t do nothing. i contacted the bank of england this morning to ask if they would say anything today, or have an emergency meeting and i vejust anything today, or have an emergency meeting and i ve just heard back, anything today, or have an emergency meeting and i vejust heard back, no comment. of course you would expect them to say that, but many economists are saying they cannot say nothing until november and markets are now pricing in that the bank of england will have to raise rates by as much as one and three quarters percentage point in november, and that base rates will reach 6% by this time next year. that is frightening, notjust if you are on a variable rate mortgage, but even on a fixed rate coming to an end in the next year or two, you won t be able to r
it. bond traders who are greenhorns and young people who just experienced bull markets and bonds and stocks for the past 40 years don t have a memory of it. when you see mortgage rates shoot up, when you see the stock market fall and the fed has to keep hiking and hiking and hiking, certainly you re going to sell first and ask questions later. there s an economist and this is at the investment bank piper sandler who says that the fed s forecast is an implicit admission that a recession is likely unless something extraordinary happens. do you agree? i agree. and the fed is losing credibility in realtime because this time last year, what were they saying? it s transitory? we have this 2% inflation which seems theoretical pie in the sky when we re dealing with 8, 9% inflation. people are feeling it at the store. many things are out of the fed s control. but does the fed really have
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