Rosenberg warns that pricing in five Fed hikes could imperil the economy

Veteran economist David Rosenberg argues the bigger risk from the upcoming Fed decision isn’t the 25 basis point hike itself but the market’s pricing of four to five additional hikes, a path he says isn’t supported by the data; with the 10-year yield above 5%, he highlights discrepancies in core inflation measurements, wage trends slowing, and surging energy costs as the true inflation driver, predicting bonds may outperform stocks as investors position for a weaker economy, and noting the November 4 Treasury issuance will be a telling datapoint.