Market Watch: First Thing Fed Breaks with Higher Rates Will Be the Financial Markets, BMO Says

Article by Vivien Lou Chen in Market Watch

The Federal Reserve is the proverbial bull in the china shop, prepared to create damage with higher interest rates to bring down the hottest inflation spell of the past 40 years.

The first thing that will break is the financial markets, “as currently unfolding,” BMO Capital Markets economists Michael Gregory and Sal Guatieri said in a note Monday.

Dow industrials were on the brink of falling into a bear market, while the S&P 500 index and Nasdaq Composite are already in one; a dollar at more than 20-year highs is causing havoc around the world; and .......

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