😵💫 Why Investors Are Feeling Déjà Vu Around the Fed and Inflation
😵💫 Why Investors Are Feeling Déjà Vu Around the Fed and Inflation
For investors, it may feel like déjà vu all over again as inflation and the Fed dominate market headlines on a day-to-day basis. After all, driving the numerous market swings last year were the ever-changing expectations around the Fed - both when investors believed the Fed was doing too little, and when they thought the Fed was tightening too much. With markets once again concerned about the direction of the Fed, what do investors need to know about how the story is evolving?
We discuss in this episode of The Wealth Effect Podcast:
📈 Core Services Inflation
📊 Consumer Price Index Components
📈 Fed Funds Futures Implied Rates
Matt Faubion, CFP®
Founder - Wealth Manager
Show notes and charts:
Goods inflation has improved but services are still a problem
Many categories of consumer goods and services have improved
The Fed is now expected to raise rates higher this year
The bottom line: Headline inflation has improved since it peaked last June, but core inflation, and services in particular, remain a challenge. The Fed will need to walk the line between fighting inflation and maintaining economic growth.
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