The Prospector News Publisher Michael Fox discusses the latest Fed Reserve Meeting with Chris Temple of the National Investor. The Fed has either “skipped” or “paused” rate hikes this meeting depending on the which code word you choose. We discuss the pause and the telegraphing of more rate hikes coming in the future.
We discuss how that the pause in itself could be inflationary in that the Fed’s pause comes as other western Central Banks continue to raised rates after their own pause as inflation rose in their jurisdictions,. A paused rate with other rates rising will put downward pressure on the US dollar reducing its buying power and raising prices. The only outliers being China and the other eastern Central banks easing to combat recessions in their economies.
As long as markets and employment figures remain where they are, there is still room for the Fed to continue its inflation fighting rate increases. The Fed notes suggesting that they might likely just do that. We discuss how the markets don’t seem to be pricing this in, with the main culprit being inexperience as there are few left on Wall street that can remember the 70’s when stagflation, high interest rates, high unemployment and High inflation were the norm.
Finally, we discuss potential inflationary “Black Swans” that may show by the end of the year. Higher Energy and Food prices seemingly the most likely events to watch out for.
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