Yahoo TV

STORY: "Early this year, in '23, markets were pricing in rate cuts already in '23 - all of that has gotten pushed forward now..." Sharma explains, in large part due to the strength of the economy.

The Fed implied that raising interest rates to tame inflation was "not a mountain that you climb up and climb down," said Sharma, but "more like a tabletop mountain, because we've gone to this level of interest rates that may be sufficiently restrictive - and they're going to stay there for a while til the lag effects play out and they can achieve their 2% inflation target on a sustainable basis. And so I think the biggest risk is that rates stay high and, in fact, I think the even bigger risk is that inflation starts to rise again."