The Federal Reserve's quantitative tightening program will ramp up this week.
As part of a broader plan to reduce a $9 trillion portfolio, the Fed will boost its monthly caps for the amount of Treasuries and holdings of mortgage-backed securities that it will let mature.
For some investors, the withdrawal of support is a good reason to be pessimistic on this market.
Greg Jensen, co-chief investment officer of Bridgewater Associates, is in that bear camp.
In an interview with Bloomberg Television, he predicted that rate hikes will drive down both inflation and economic growth,
sending asset markets to declines on the scale of 20% to 25%.
Europe’s energy squeeze is getting worse. Gazprom PJSC has told French utility Engie SA it will reduce gas deliveries because of disagreements over some contracts.
“We’re getting ready for the worst-case scenario, which is a complete cut-off,” French Energy Transition Minister Agnes Pannier-Runacher told France Inter radio.
She reiterated that Russia was using gas as a weapon of war. Meanwhile, European energy prices plunged on signs that EU officials are preparing to intervene in the short term.
Prices have been extremely volatile in recent days amid thin trading and much uncertainty.