Fed has been 'dragging the market behind it' in 2023: Economist

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As we move into the last three months of 2023, what have the first nine months of the year shown us about what to expect for the rest of 2023? S&P Global Ratings Global Chief Economist Paul Gruenwald and Marketgauge.com Chief Strategist Michele Schneider join Yahoo Finance Live to discuss. Gruenwald says, “the surprise this year has been, one the resilience, but two the Fed’s been kind of dragging the market behind it.” “This tightening cycle, the Fed’s been dragging the markets higher. The market seems to fully buy…that we’re going to keep rates higher for longer,” Gruenwald explains. “I think we’re going to be at or near this rate for a while into 2024 and we’ll see if the resilience holds up,” Gruenwald notes. Schneider discusses a few “areas of concern” that could impact the economy, including wages, geopolitical concerns, and weather. Schneider notes that “there’s a lot of similarities” between the 1970s and now. “It really seems like exactly what kind of happened in '76” and “that to me is going to continue to be my concern, until I see conditions change,” Schneider says.