The Fed raising interest rates will ‘create a recession,’ Dick Bove warns

The Fed raising interest rates will ‘create a recession’: Dick Bove

Odeon Capital Group chief financial strategist Dick Bove argues that ‘to kill inflation’ the Fed will need to ‘lower demand below supply.’

Odeon Capital Group chief financial strategist Dick Bove joined "Mornings with Maria" Friday, arguing that the Fed raising interest rates will "create a recession" and "to kill inflation" they will need to "lower demand below supply."

INFLATION HAS ERODED 40% OF SOCIAL SECURITY'S PURCHASING POWER SINCE 2000

DICK BOVE: We are going to have to see interest rates go up fairly significantly. We are going to have to cut the size of the Federal Reserve balance sheet. It is going to create a recession. Stock prices are going to do poorly between now and the end of the summer… [Jerome Powell is] kind of warning you that these bad things are going to happen. 

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Odeon Capital Group chief financial strategist Dick Bove told FOX Business that the Fed raising interest rates will ‘create a recession.’ (Photographer: Samuel Corum/Bloomberg via Getty Images / Getty Images)

I don't think how he can avoid them. Essentially what he has to do to kill inflation is he's got to lower demand below supply and to lower demand below supply, you've got to stop printing money… you got to increase the cost of that money, both of which I think the Fed will do.

WATCH THE FULL INTERVIEW BELOW:

The Fed ‘can’t avoid’ a recession: Dick Bove

Odeon Capital Group chief financial strategist Dick Bove provides insight into how the Fed is handling inflation. 

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