The likelihood that the Fed will cut rates this year has sunk to nearly pre-banking crisis levels, says Michael Purves. He doesn't think tighter lending standards will push the U.S. into a depression. Michael expects the Fed to hike 25 basis points in June or July and then pause. He cautions that stocks could lose interest rate sensitivity, citing the 2002-2007 market and compares the Nasdaq to the bond market.
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