Tags: blackstone | byron wien | republicans | lose | house | senate

Byron Wien Predicts: Fed to Hike 4 Times as GOP to Lose House, Senate

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By    |   Tuesday, 09 January 2018 10:36 AM

Investment guru Byron Wien predicts Republicans losing both the House and Senate in midterm elections in a referendum on President Donald Trump.

The Wall Street veteran also predicts that the Federal Reserve will raise short-term interest rates four times in 2018, instead of the anticipated three.

Wien sees a stock correction this year which will bring a sudden halt to the Trump market rally.

The vice chairman of Blackstone's private wealth solutions group recently highlighted some of the biggest surprises he expects to see in 2018 on Fox Business Network’s “Wall Street Week.”

“I think individuals are going to be spending because they are going to have more income, and I think that the Fed is going to be sensitive to the economy overheating and I think they’ll raise rates. A lot of people think two or three, I think they are going to go farther,” he said.

According to Wien’s annual list of surprises.stock speculation will get ahead of itself in 2018, leading to a short correction for the S&P 500, while oil will vault above $80 as “populism, tribalism and anarchy spread around the world,” Bloomberg reported.

Last December, after defeating Republican candidate Roy Moore during the Alabama special election, Doug Jones became the first Democrat in a quarter of a century to win a Senate seat in Alabama. This narrowed the Republican’s majority in the Senate to 51-49, Fox Business Network explaind.

“There are never people that think that the Democrats have a good chance of taking the House, but almost nobody thinks the Democrats have a chance to take the Senate. I would say that if the election were held tomorrow, that probably would be the case. All of the events during the [last] year, the Mueller investigation and other things that will cause the Democrats to gain some additional momentum,” he said.

Meanwhile, another respected guru says investors can make a tidy fortune after listening to economic guru Byron Wien's surprise predictions for the new year.

"He's tremendous, he's still got game," Jim Cramer said on CNBC. "Most people don't have any game when they get older."

"The great thing about Byron's picks, and I've followed Byron for 30 years ... is when he's wrong, it really doesn't cost you anything. When he's right, you can make a fortune," Cramer said on "Squawk on the Street."

Wien is a 50-year veteran of Wall Street. This is his 33rd year giving his views on a number of economic, financial market and political surprises for the year, beginning the tradition when he was chief U.S. investment strategist at Morgan Stanley, CNBC reported.

(Newsmax wire services contributed to this report).

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Investment guru Byron Wien predicts that Democrats are going to take back Congress this year while consumers will be hit with four interest-rate hikes.
blackstone, byron wien, republicans, lose, house, senate
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2018-36-09
Tuesday, 09 January 2018 10:36 AM
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