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close video US economy faces very dire situation if Fed cant keep rates high: Mike Lee

A ‘Word on Wall Street’ panel with Michael Lee Strategy’s Mike Lee, Strategic Wealth Partners’ Mark Tepper, Bulltick Capital’s Kathryn Rooney Vera discuss market trends amid banking collapse volatility.

While some of America’s top banking CEOs discuss a new rescue plan and the Federal Reserve kicks off its two-day meeting, one market expert has warned of a "very dire situation" dependent on fiscal policy. 

"If the Fed can't keep rates high, if they can't keep raising as they need be, and we have persistently high inflation, we are in a very, very, very, very dire situation," Michael Lee Strategy founder Mike Lee said on "Mornings with Maria" Tuesday.

"So I think the Fed goes 25 basis points. I think how the market reacts depends 100% on what Powell says and reacts to the questions and how the market absorbs that," he continued. "But what I see is not so much as a contagion from banks or some sort of massive solvency crisis, it's what do we do if the Fed can't raise any more, can't keep tightening? It has to ease, so there's no systemic shocks from the banking system."

With a strong market rally underway Tuesday morning, the Fed began discussing its latest interest rate decision. Sixty-two percent of investors expect the policymakers to continue hiking rates, which would mark the ninth straight increase, while 38% expect no change, according to CME's FedWatch.

BANK TURMOIL COULD BRING ‘VICIOUS’ END TO BEAR MARKET, MORGAN STANLEY SAYS

While the Fed under Chairman Jerome Powell has embarked on its most aggressive rate hike path since the 1980s to combat stubbornly high inflation, a recent report written by U.S. economists indicates if history is destined to repeat itself, then the Fed will "find it hard" to avoid a recession later this year.

The Federal Reserve could bring the U.S. economy into a “very dire situation,” Michael Lee Strategy founder Mike Lee said on “Mornings with Maria” Tuesday. (Fox News)

The central bank is also navigating bank-run contagion fears this week, after the recent insolvencies of Silicon Valley Bank and Signature Bank, and potentially First Republic Bank.

Lee signaled the banking and rate hike dilemmas are ones of "confidence," as opposed to structural issues. Image 1 of 4

Markets often react when Federal Reserve Chairman Jerome Powell speaks or announces a rate hike decision. | AP Newsroom

"No matter how good the banking laws are, no matter how good the oversight is, no matter how strong your balance sheet is, nobody can withstand a 20 to 25% deposit base withdrawal in a single day, as happened with Silicon Valley Bank," Lee explained. close video The Fed to meet this week to decide possible rate hike

Mercatus Center distinguished fellow Thomas Hoenig discusses how the Fed’s plan for inflation, argues it has been running poorly for years on The Bottom Line.

"So I think the upshot of what just happened is lending standards are most likely going to increase, further slowing the economy," he added.

Also joining the "Word on Wall Street" panel, Bulltick Capital’s chief market strategist Kathryn Rooney Vera agreed with Lee that the Fed will likely raise rates by 25 basis points Wednesday.

"It has to hike 25 basis points. It has a dual mandate, 2% inflation and full employment, it has to comply with that. If they do not hike this week, tomorrow, this is going to be a huge additional shock to credibility and they're very focused on that," Rooney Vera said. "So they have to recoup credibility. If they do not hike 25, I think it will be poorly received by the markets."

GET FOX BUSINESS ON THE GO BY CLICKING HERE close video US will see 25 basis point hike from the Federal Reserve: Michael Kantrowitz

Piper Sandler chief investment strategist Michael Kantrowitz provides insight on the Federal Reserve’s response to record-high inflation on ‘Making Money.’

Michael Wilson, the chief U.S. equity strategist at Morgan Stanley and a longtime Wall Street bear, said in an analyst note on Monday that the stock market is in the early and painful stages of exiting the bear market than began in the summer.

"The last part of the bear can be vicious and highly correlated," he said. "Prices fall sharply via an equity risk premium spike that is very hard to prevent or defend in one’s portfolio."

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FOX Business’ Megan Henney contributed to this report.

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Reds: 1st since 1960 to lose 3 straight by 1-0

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Reds: 1st since 1960 to lose 3 straight by 1-0

MILWAUKEE — The Cincinnati Reds lost 1-0 to the Milwaukee Brewers on Thursday night to become only the second team in the live-ball era (since 1920) to lose three consecutive 1-0 games.

The Reds joined the Philadelphia Phillies, who lost three straight in the same fashion in 1960, according to ESPN Research.

“Nobody’s happy with what’s happened the last three games,” Reds manager Terry Francona said after the string of 1-0 losses continued in the opener of a four-game series at Milwaukee. “We’ll figure it out together. I feel strongly about that.”

Cincinnati’s lineup showcased its potential Monday in a 14-3 victory over the Texas Rangers, but the Reds haven’t scored since.

Texas’ Nathan Eovaldi outdueled Carson Spiers on Tuesday. Jack Leiter and four Texas relievers combined for 10 strikeouts Wednesday as the Reds wasted a brilliant performance from Hunter Greene.

Milwaukee’s Nestor Cortes shut down Cincinnati on Thursday, allowing one hit, striking out six and walking two over six innings.

Cincinnati’s Nick Lodolo gave up four hits and one unearned run in 6⅔ innings Thursday, but he took the loss because the Reds mustered just two hits.

“It’s part of the game, you know?” Lodolo said. “I’ll be honest with you. Obviously I want us to score, but I’m not really thinking about it. I’ve got to do my job at the end of the day, regardless. We’ll turn it around. I guarantee that.”

That’s the attitude Francona wants to see from his pitchers as Cincinnati’s hitters try to break out of their slump.

“We’re not going to have a situation where it’s ‘us’ when we win and it’s ‘they’ when we lose,” Francona said. “We’ll do this together.”

Francona said there’s no common thread between the games that explains his lineup’s struggles. The Reds have faced different styles of pitchers each time.

Eovaldi is a veteran right-hander who went the distance while allowing four hits and no walks. Leiter’s a hard-throwing rookie right-hander. Cortes, a veteran left-hander, doesn’t have the velocity of Eovaldi or Leiter but effectively mixed his cutter and changeup with his fastball.

Cincinnati’s struggles Thursday may have been particularly frustrating because Cortes looked so awful in his last start, a 20-9 loss to the New York Yankees. Cortes allowed homers on each of his first three pitches that day and ended up yielding eight hits and five walks in two innings of a game that drew attention to the Yankees’ use of “torpedo bats.”

The Reds made Cortes look like an entirely different pitcher.

“It was embarrassing, what happened to me last time,” Cortes said. “I think, as a starter, you’ve got 30 or 32 of these. There’s going to be a lot of bad ones throughout the way. You’ve just got to learn how to brush them off and go to the next one. That’s what I did.”

The Reds’ lone hit off Cortes came from Jose Trevino, who delivered a one-out double in the third off his former Yankees teammate. Cincinnati’s only other hit Thursday was a single by Jeimer Candelario off Elvis Peguero in the seventh.

Cincinnati has a combined nine hits, three walks and 27 strikeouts during the skid.

“To be totally honest, you see this all the time throughout a baseball season,” Trevino said. “Pitchers will pick up the hitters and the hitters will pick up the pitchers. It will all switch at some point. We’re going to need them. They’re going to need us. And at some point, we’re all going to be together. That’s just how the baseball season goes.

“Right now, our pitchers are doing really well and our hitters, we’re grinding. It’s not like we’re out there trying to give outs away. We’re out there putting some good at-bats together. We’re going to turn this thing around. I have full confidence in this team.”

The Associated Press contributed to this report.

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Dodgers’ Freeman placed on IL after shower slip

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Dodgers' Freeman placed on IL after shower slip

Los Angeles Dodgers first baseman Freddie Freeman, who slipped and fell in the shower Sunday morning, was put on the injured list for his ankle injury, the team announced Thursday.

The move is retroactive to Monday. He hasn’t played since Saturday and is 3-for-12 this season with two home runs and four RBIs.

The incident happened at home during the Dodgers’ off day. Freeman’s wife had to drive him to Dodger Stadium on Sunday for a three-hour treatment session. By the time it was over, he was able to drive himself home. An X-ray showed no serious damage.

Freeman sprained his right ankle on a play at first base in late September and struggled in the first two rounds of the postseason, but it was hardly evident during the World Series. He homered in the first four games and had 12 RBIs, earning the World Series MVP award as the Dodgers beat the New York Yankees in five games.

He had debridement surgery in December to remove loose bodies in the ankle.

The Dodgers (8-0) begin a three-game series at the Philadelphia Phillies on Friday.

The Associated Press contributed to this report.

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Judge gets 500th extra-base hit; 3rd-fastest Yank

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Judge gets 500th extra-base hit; 3rd-fastest Yank

NEW YORK — Aaron Judge smiled and perhaps blushed when informed of Jazz Chisholm Jr.’s praise.

“We all tell him every day: ‘Hey, we want to be you when we grow up,'” Chisholm said after Judge became the third-fastest New York Yankees player to reach 500 extra-base hits with a three-run homer in the first inning of Thursday night’s 9-7 win over the Arizona Diamondbacks.

And the two players who reached the mark in fewer games than Judge? Joe DiMaggio and Lou Gehrig.

“When I’m an old man coming to Old-Timers Day, I can look back and we can joke about it and laugh about it,” Judge said.

Coming off his second American League MVP award, Judge fell a triple short of the cycle and is hitting .417 with five homers and 15 RBIs in the first six games this season. He has 320 homers, 175 doubles and five triples in 999 games, and only DiMaggio (853) and Gehrig (869) reached 500 extra-base hits in fewer games among Yankees.

“I feel like he’s still getting there, which is remarkable,” Yankees manager Aaron Boone said. “It’s that part of me that takes him for granted a little bit. I just feel like he should get an extra-base hit every time. I kind of say it out loud just to try and remind myself what we’re watching every day.”

Judge lined a 1-1 fastball from Merrill Kelly at 112.1 mph to the opposite field and into the Yankees’ bullpen for a 3-0 lead. He added a run-scoring single in the fourth inning as the Yankees moved ahead 7-3 and hit a 111.3 mph double in the sixth. He also flied out and hit a 109.5 mph groundout.

“I’m like, did you miss that one?” Boone recalled, laughing. “I catch myself having these ridiculous conversations with him sometimes, just because he keeps setting the bar so darn high.”

Judge knows he’s in for ribbing when he singles or doubles.

“He gives me a little smirk when I get on base like that,” he said.

Judge also stole his first base of the season, as did Chisholm. Judge swiped 10 last year to Chisholm’s 40.

“I told him I was going to catch him in stolen bases this year,” Judge said playfully.

“He’s starting to steal bags now. It’s just getting ridiculous out of him, man,” Chisholm said.

Chisholm and Trent Grisham hit two-run homers off Kelly (1-1), who allowed a career-high nine runs, nine hits and three walks in 3 2/3 innings. Chisholm is hitting .292 with four homers and eight RBIs.

“I’m OK compared to him. I’m trying to get to his level right now,” Chisholm said of Judge. “I told him I’m not going to try to fall behind him too far. I got to keep up with him.”

New York had 22 homers on a 4-2 opening homestand, five more than any other team ever hit in its first six games. Even though it was game No. 6, the Yankees felt an urgency after losing the Tuesday and Wednesday.

“Big G said a couple words before the game, just about this was our home turf. We got to go out there and we don’t get swept at home,” he said of Giancarlo Stanton. “Guys took that to heart.”

Carlos Carrasco (1-0) got his first Yankees win, giving up three runs and five hits in 5 1/3 innings. After New York opened a 9-3 lead, Geraldo Perdomo hit a seventh-inning grand slam off Ryan Yarbrough. Luke Weaver got four outs for his first save this season, ending Arizona’s three-game winning streak.

Judge repeatedly refers to last year’s World Series loss to the Los Angeles Dodgers. It weighs on him far more than historical accomplishments.

“Especially after last season where we weren’t able to finish the job, guys are motivated to go out and do something special,” he said. “It starts every game you play.”

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