Good News: Inflation Expectations are Falling

Consumer inflation expectations have fallen for the second month in a row — per the latest Federal Reserve Bank of New York survey: In one year, consumers expect inflation to be 6.2% — down from the 6.8% expected the month before. In three years, consumers expect inflation to be 3.2% — down from the 3.6%…

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How much will the Fed raise rates in the next meeting?

Inflation came in higher than expected at 9.1% — compared to economists’ 8.8% forecast — the highest in over 40 years. What’s the big deal? For decades, the U.S. has been dealing with low inflation — trying to find ways to bring it higher. Remember, too little inflation and too much inflation is bad —…

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Inflation data raises the chances of a recession

Last Friday’s inflation report showed what no investor wanted to see — inflation picking up speed. “The headline numbers in this report are dreadful” — a sentiment shared among a panel of economists (Brookings). What’s the big deal? Recession fears are rising, and markets are now increasing the chances of a 0.75% interest rate increase…

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March CPI report show signs of peak inflation

The Consumer Price Index report released yesterday showed inflation’s highest levels since 1981. What’s the big deal? March was the first full month since the Ukraine invasion disrupted global supply chains — which sent commodity and food prices soaring. The war on Ukraine had a significant impact on gasoline prices which made up half the…

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Monthly horror show: Inflation numbers spooks investors

Inflation will haunt your portfolio for months to come. US Consumer prices jumped 0.9% in October (6.4% compared to Oct  2020) — the highest level in 30 years. What’s the big deal? For investors, inflation is one of the biggest things to fear. The longer high inflation lasts, the bigger its potential impact on markets….

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Inflation: the “single biggest risk out there right now”

Inflation, one of the biggest risks to the economy, isn’t going away anytime soon. September’s inflation data came out slightly higher than expected — with US consumers up 5.4% in the past year — slightly higher than 5.3% in August. What’s the big deal? Goldman execs see inflation as the top risk to global economy…

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Inflation slows in August: What does this mean for investors?

Inflation — the deadly word in the market — cooled down slightly in August. Investors can relax, but don’t get too comfortable. Consumer prices gained 0.3% in August compared to July — down from 0.5% the previous month. On an annual basis, prices are up 5.3% from August 2020. What’s the big deal? Inflation’s direction…

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