The Federal Reserve’s moves to curb inflation will not end well for some investors, Scott Minerd of Guggenheim Partners said Monday. Minerd told CNBC’s ” The Exchange ” that the Fed may “overdo it” when it comes to efforts to mitigate inflationary pressures through rate hikes. The result, he said, would be a tough period for investors with long-risk assets. “They’re going to push until something breaks,” Minerd said. “I think the break will probably come through, young know, equity prices, but could come in other places, … could come in the emerging markets. Eventually, this will end in tears.” He also noted that the stock market has never bottomed while the Fed was in a rate-hiking cycle. Minerd’s comments come ahead of a key Fed meeting this week in which the central bank is largely expected to raise rates by 75 basis points, or 0.75 percentage point. This would be the latest move by the to quell U.S. inflation, which is running close to its fastest pace in about four decades. Still, the Guggenheim chief investment officer said the Fed should consider future inflation and money supply — which is declining — when deciding future rate hikes aimed at cooling inflationary pressures. Minerd said the latter part of the fourth quarter “could be very, very tough” as he expects half- and quarter-point increases after this week’s meeting. Minerd has been bearish recently. Earlier this month, he called for a 20% drop in the S & P 500 by mid-October, saying that the bear market remains intact .
