Michael Arone and Fed

Federal Reserve: As he said — unlike in 1937 — inflation is under control and investors have plenty of faith in the economy, according to Market Watch. Commenting on Monday, Michael Arone, chief investment strategist at State Street Global Advisors, said the Fed has to move past the ghost of 1937 and stop worrying about hiking rates too prematurely. That year also marks the last time the Federal Reserve hiked interest rates from zero, and what followed wasn’t pretty: a severe recession and a 49% collapse for the Dow industrials DJIA, +0.64% Bank of America Merrill Lynch was among those chattering about 1937 parallels in a recent note, with a not-so-easy-on-the-eyes chart of that stock fallout way back when: BofA Merrill Lynch/Bloomberg Caption outside of wrapper for normal article images The good news is that chief investment strategist Michael Hartnett isn’t extrapolating any scary history here. Arone noted that 78 years ago, consumer prices were dropping and unemployment was on the way up. There a little more on using history as a guide from Pragmatic Capitalism Cullen Roche who says rate hikes don’t normally kill bull markets. A tardy Fed, has a good chance of proving bearish for bonds, and longer-term, for equities as well, he said. (news.financializer.com). As reported in the news.