Economist Zeberg: Fed rate hike would be 'catastrophically wrong'
- —Futures price in more than a 90% probability of a rate hike to 3.75–4%
- —Zeberg: job creation is below levels seen before the 2001 and 2007 recessions
- —Long-term unemployment and its average duration are higher than before those downturns
- —Core inflation is at or below levels seen before previous recessions
Why it matters: If the Fed hikes rates despite a weak labor market, the risks of a recession and a sell-off in risk assets, including crypto, will rise.
Source: Finbold