Bloomberg
- The Fed's dovish tone has fueled a market rally that complicates its missions, economist Komal Sri-Kumar said.
- He said that prolonged high interest rates could trigger a hard landing.
- The Fed will unveil its latest rate decision at 2 p.m. ET Wednesday.
The Federal Reserve's dovish tone since the end of last year has fueled a market rally and loosened financial conditions, complicating its mission and potentially setting the stage for further tightening, according to economist Komal Sri-Kumar.
The president of Sri-Kumar Global Strategies said on Wednesday that he sees "no reason" for the dovishness that the Fed has been broadcasting to markets, and that he worries about the potential for a policy reversal.