Fed ‘Not Out of Bullets’ Yet to Control Inflation: Milken Update

The Milken Institute Global Conference continues in Beverly Hills, California, bringing together investors, dealmakers, power brokers and celebrities to discuss markets and megatrends. Academics, sports stars, entrepreneurs and politicians among the thousands coming to the Beverly Hilton for the event, which runs through Wednesday.

The famed gathering, in its 25th year, has pitched its focus as the power of connection, celebrating “the forces that bring us together while confronting the issues that keep us apart.” It’s a fitting theme for a world jolted by war in Ukraine just as the highest inflation in decades raises the specter of recession and the dregs of a global pandemic refuse to disappear.

Speakers for panels scheduled today include Anne Walsh of Guggenheim Partners on private credit; Mikhail Khodorkovsky and Steven Mnuchin on what’s next for Russia and Ukraine; MSNBC’s Rashida Jones on the future of news media; and Barry Sternlicht on red-hot real estate markets.

The Fed ‘Not Out of Bullets’ Yet With Distressed Debt in Focus (9:30 p.m. ET)

Oak Hill Advisors founder and CEO Glenn August returned to one of the central topics of the Milken conference to help wrap up its second day. August and others pondered what the Federal Reserve will likely do to rein in inflation and how that will affect investment.

In a panel discussion titled “Alternative Opportunities: Stressed, Distressed and Special Situations,” August asserted that the Fed still has options to prevent the country from slipping into a fully distressed environment.

In terms of raising rates, it would take more than just a couple hundred basis points, before the economy reaches a point of deep recession, he said.