The Tell: Markets risk a ‘brutal’ fall as they ignore the Fed’s latest warning shot

Markets find themselves in a tough spot, according to the Wolf Street financial blog’s Wolf Richter.

Richter is focused on a warning shot fired late Thursday by the New York Federal Reserve’s William Dudley.

The salvo from Dudley came in the same week that the inflation-obsessed Fed got a fresh reading on consumer prices.

Dudley said the U.S. central bank may have to “press harder on the brakes” at some point over the next few years, increasing the risk of a hard landing for the economy.

“It was a shot before the bow — one of many — for the markets to start paying attention to the Fed,” writes Richter, whose take served as a call of the day for our Need to Know column on Friday.

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