US Fed not concerned with market correction; won’t rush into high multiple stocks: Geosphere Capital

The US Federal Reserve is not concerned with the market correction, said Arvind Sanger managing partner of Geosphere Capital Management.

In an interview to CNBC-TV18, he said, “The Fed put has gone and gone for good. This Fed Put has been around since the Greenspan era (Alan Greenspan, Former Chair of the Federal Reserve of the United States) – that put is gone because right now the stock market correction is not what is bothering the Fed and that’s one thing that is going to cause significantly higher volatility than what we have got used to in the last 25 years.”

Sanger believes that China’s zero COVID-19 policy is turning out to be a huge mistake. He said, “There is a lot of thing going on the supply side but the China re-shutting down the zero COVID strategy, which is proving to be a huge mistake, but Xi (Xi Jinping) is so far committed that he is unwilling to back down but that is going to exacerbate supply chain challenges.”