Fed Rate Hike, Wall Street's Regulatory Headwinds, BRICS Gold Currency Moves: Economic Highlights This Week

This week in the economic sector, we saw a range of developments, from predictions of a roaring economic boom driven by AI to potential regulatory shifts that could impact Wall Street banks. Here’s a look at the top stories:

Roaring Economic Boom: Market veteran Ed Yardeni predicts a decade of robust economic growth for the U.S., driven by advancements in artificial intelligence, automation, robots, and quantum computers. Despite initial challenges, Yardeni believes the decade will end on a positive note, with the S&P 500 potentially reaching as high as 5,400 by the end of 2024. Read the full article here.

Federal Reserve Rate Hike: The Federal Reserve is expected to raise rates, bringing the fed funds rate to its highest level in more than 20 years. Former Atlanta Fed president Dennis Lockhart believes the Fed has to follow through with a rate hike, with the market pricing in a 98.9% chance of a 0.25% hike. Read the full article here.

BRICS Gold Currency Moves: Robert Kiyosaki, the author of “Rich Dad Poor Dad,” suggested that the BRICS nations might introduce a gold-backed currency, which could significantly impact the dominance of the US dollar. This move could lead to a “de-dollarization” of the world, with implications for the US. Read the full article here.

No Recession Evidence: Steve Eisman, known for his prediction of the 2008 economic crisis, sees no signs of an impending recession. Eisman believes the market will continue to rally as long as there’s no recession in sight. He also commented on the strength of AI-linked stocks, suggesting they will continue to gain as long as interest doesn’t climb too far up. Read the full article here.

Wall Street Banks Regulatory Headwinds: Wall Street's financial giants, including JPMorgan Chase & Co. JPM, Bank of America Corp. BAC, Citigroup Inc. C, Goldman Sachs Group Inc GS, Wells Fargo & Co. WFC, Morgan Stanley MS and others are gearing up for impending regulatory shifts that could potentially obliterate nearly all of the $118 billion in extra capital they've gathered over the previous decade. Read the full article here.

For more in-depth coverage of these stories and more, you can read more on Benzinga's economic coverage by following this link.

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