SocGen's Edwards: Fed will be forced into 'more pronounced' tightening than market expects

Rising wages and inflation

Laura Dew
clock • 2 min read

Société Générale's bearish analyst Albert Edwards has said Janet Yellen could be prompted to increase rates at a more "pronounced" pace than the market expects this year, driven by rising wage inflation.

Permabear Edwards (pictured) said chairman Yellen "at long last" had the "tightening bit between her teeth" in light of rising wage inflation and strong employment figures. Speaking in San Francisco last month, Yellen said: "The unemployment rate is less than 5%, roughly back to where it was before the recession. And, over the past seven years, the economy has added about 15.5 million net new jobs.  "Although inflation has been running below our 2% objective for quite some time, we have seen it start inching back toward 2% last year as the job market continued to improve and as the ef...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Global

Global fund managers most bullish in two years as growth expectations improve

Global fund managers most bullish in two years as growth expectations improve

BofA Global Fund Manager survey

Cristian Angeloni
clock 13 February 2024 • 2 min read
 Stories of the week: 3 November

Stories of the week: 3 November

Odey Asset Management; BoE; Fed; - The biggest stories from the world of investment and asset management this week

Sarka Halas
clock 03 November 2023 • 1 min read
Opportunity abounds as India gains entry to JP Morgan's bond index

Opportunity abounds as India gains entry to JP Morgan's bond index

'Significant foreign investor inflows’

Investment Week
clock 10 October 2023 • 6 min read
Trustpilot