Market Overview

Sam Zell: Fed Rate Hike Is At Least Six Months Too Late

  • Sam Zell, Chairman at Equity Group Investments, appeared on Bloomberg TV on Wednesday.
  • The expert sat with Stephanie Ruhle and David Westin and discussed the much-anticipated Federal Reserve rate hike, the risk of a recession near-term, and investor flexibility provided by low-interest.

Members Federal Open Market Committee are meeting to discuss monetary policy, and expectations point towards the announcement of the start of a gradual rate hike process. Ahead of the decision.

"I think that this interest rate hike is probably six or eight months too late," said Zell. "I think that the economy is closer to falling over than it is to going up."

How bad is it really? According to Zell, "there is a high probability that we're looking at a recession in the next 12 months." The expert mentioned one main issue weighing here: the strong dollar, which is having a large impact on U.S. production, businesses and overall international competitiveness.

Related Link: Ben Bernanke Explains The Importance Of Credit

Other important signs of an imminent recession include:

  • A slowing world trade
  • A continuation in the manipulation of currencies
  • An increasing tendency towards layoffs at multinational companies
  • A continued search for new demand

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Posted-In: Bloomberg CNBC Equity Group Investments Sam ZellFederal Reserve Media


Related Articles (FED)

View Comments and Join the Discussion!