LONDON — As a global market sell off continues amid fears of a looming U.S. recession, the Federal Reserve may have little room for manoeuvre, investor Cole Smead warned Monday.
"The Fed is trying to fight a ghost in some respects.
But it's a fiscal problem, and that fiscal problem's not ending," he said.
The CBOE Volatility Index, also know as the "VIX" — a measure of expected market volatility — jumped to 41.65, according to LSEG data, hitting its highest level since October 2020, as risk fears returned to the market.
"Whoever comes in, be it Kamala Harris or Donald Trump, there's going to be an interest in trying to prop up anything," he said.
Persons:
Jerome Powell, William McChesney Martin, Cole Smead, Smead, CNBC's, Jay Powell, Kamala Harris, Donald Trump
Organizations:
Federal Reserves, Washington , D.C, LONDON, Federal, Smead Capital Management, CNBC, Reuters
Locations:
Washington ,, U.S, Europe, Asia