Marathon's Richards Says Equities Can Absorb 25 Bps Fed Hike

• Inflation has been above the 2% target for over five years, with expectations for a 3% CPI print this week.
• The Fed committee is likely to vote for a rate hike, potentially overriding the Chair's initial stance if inflation remains high.
• Equities are performing well due to strong Q2 earnings (up 30% YoY), 9% revenue growth, and robust economic indicators like 4.7% real GDP growth (Atlanta Fed) and strong job numbers.

Bruce Richards of Marathon Asset Management believes the equity markets can absorb a potential 25 basis-point Fed rate hike, citing strong corporate earnings, robust economic growth, and a healthy consumer. He notes that inflation remains above target, which could lead the Fed committee to vote for a hike despite the Chair's potential preference.