#FederalReserve #inflation #yahoofinance
Commonwealth Financial Network CIO Brad McMillan joins Yahoo Finance Live anchors Seana Smith and Dave Briggs to discuss the latest Fed speak, how markets are pricing in future rate hikes, what bank earnings can tell investors about the economy, and the outlook for the tech sector.
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The Federal Reserve, commonly known as the Fed, has been in the spotlight for its efforts to keep inflation under control. Inflation refers to the increase in prices of goods and services over time, which reduces the purchasing power of the currency and erodes the value of savings. The Fed’s mandate is to promote price stability and full employment, but achieving these goals can be a delicate balancing act.
According to a recent report by CNBC, a strategist at JPMorgan Asset Management believes that easing inflation is “a question of when, not if.” This statement reflects the cautious optimism that many experts have about the state of the economy and the actions being taken to mitigate the impact of inflation.
Inflation has been a concern for many months, due in part to the pandemic-related disruptions to supply chains and the unprecedented levels of government stimulus spending. The Fed has responded by keeping interest rates low and continuing its bond-buying program, which injects large amounts of money into the economy.
Some critics have argued that these measures could lead to runaway inflation, but the Fed has maintained that they are necessary to support the recovery of the economy. The central bank has set a target of 2% inflation over the long term, but it has allowed for temporary increases above this level to support employment growth and stabilize markets.
The strategist at JPMorgan recognizes the potential for inflation to continue in the short term, but believes that it will eventually subside as the economy returns to normal. This view is shared by many analysts who have pointed to the improving outlook for job growth and consumer spending as signs of a sustained recovery.
However, the JPMorgan strategist also cautioned that the path of inflation remains uncertain, and that unexpected events could cause prices to rise faster than anticipated. For example, a surge in oil prices or a new wave of COVID-19 infections could disrupt the economy and lead to higher prices.
In conclusion, the Fed’s efforts to ease inflation are an ongoing challenge, and there are no guarantees that their policies will be successful. However, many experts believe that with a cautious approach and continued support for the economy, it is possible to achieve price stability and ensure that the recovery remains on track. Ultimately, the fate of the economy will depend on a variety of factors, including global trends, political developments, and unforeseen events.
If the inflation keeps going, Fed can raise the interest rate to 100%. There is absolutely nothing stopping them, right?
We need rate cuts immediately
sooooooo SPY to the moon tomorrow?
Do the exact opposite if you want to win, buy tech, sell staples
Fight Jerome you will lose.
Here comes the new lower Lows!