Video News/In Focus with Jeremy Szafron

(Kitco News) - A single interest rate hike from the Federal Reserve this week would be survivable, but the four or five the market has begun pricing in would be more than the economy could bear, according to David Rosenberg, founder and president of Rosenberg Research. Speaking with Kitco News as the 10-year Treasury yield touched 5%, Rosenberg said he does not believe one rate hike would be a policy mistake, but warned that if the Fed ratifies market expectations for a sustained tightening campaign, "I don't think the economy can withstand it." He argued the current inflation is largely an oil shock rather than durable, demand-driven inflation, and questioned the reliability of the latest jobs and CPI readings. Rosenberg said he is buying 10-year Treasuries at 5%, calling them "really juicy yields," and expects a slowing economy and post-midterm fiscal gridlock to fuel a bond rally. On gold, he stressed he treats it as a long-term investment rather than a trade, noting he has been bullish since 2010 when it traded near $1,000, and that central bank buying remains the key source of demand. He also said he believes the US dollar is at risk of a long-term bear market.