Bonds signaling Fed may be on permanent hold: Fleming

Global bond markets in negative or record-low-yield territory signal slow growth that means the US Federal Reserve probably missed its window to raise interest rates, according to former Morgan Stanley wealth-management head Greg Fleming.

"Given the uncertainty and a lot of the challenges that these central banks are dealing with, rates are not going up really anywhere," Fleming said in an interview with "Wall Street Week". "Our Fed has missed the window to take rates up. And I do think that's going to be a problem over time."

Yields on 10 and 30-year US Treasuries touched record lows this month after Britain's vote to leave the European Union sparked concerns about global economic growth. With the Fed's key interest rate at just above zero, the central bank has fewer tools if the economy sputters in the next three years, Fleming said.

The US economy is in the later stages of an expansion that could be hindered by a strong dollar, he said. Market volatility will remain elevated after the Brexit vote injected uncertainty about the future of the euro, Fleming said.

"Wall Street Week" is produced by SkyBridge Media, an affiliate of SkyBridge Capital, the fund-of-funds business founded by Anthony Scaramucci.