By Divya Chowdhury and Lisa Pauline Mattackal
DAVOS, Switzerland (Reuters) – The U.S. Federal Reserve may be forced to rethink its hawkish stance as it hikes interest rates in the face of a slowing economy and deteriorating market fundamentals, Guggenheim Partners’ Global Chief Investment Officer Scott Minerd said on Tuesday.
“The neutral rate is probably lower than where the Fed thinks it is … by June when the Fed funds rate is expected to be about 1.75%, any tightening beyond that would be restrictive,” Minerd said on the sidelines of the World Economic Forum meeting in Davos, Switzerland