We are two days away from what could be the single-most important Fed meeting there’s been in years. If Fed Chair Powell sticks to the script and gives the market what it expects, it is likely that stock prices will make an explosive move higher.
When the economy is expanding, when more people are getting jobs and spending money, when economic data is improving and investors anticipate more revenue and higher profits for corporations, it’s a pretty good bet that the majority of stocks will be moving higher.
The “buy gold” mantra says that as inflation rises, the dollar weakens and so gold (and really all commodity prices) rise. But that’s not what’s happening….
Fed chair Powell essentially guaranteed another 75 bp rate hike at next week’s FOMC meeting. This will take rates to 3.25%. And the belief is that 4% is the silver bullet for inflation.
Wall Street has been anticipating the Federal Reserve’s announcement today. The Fed has been holding a policy meeting since yesterday to discuss what the U.S. needs to do to combat inflation without resulting in anything catastrophic for the economy and the American people.
Memorial Day weekend is a little more than a week away. In the U.S., Memorial Day and the weekend leading up to the holiday have always been the unofficial start to the summer season. Will travel stocks meet the high expectations?
Every month, inflation is becoming a bigger issue. It’s turned into a major pain to the Biden administration, especially when thinking about November’s midterm elections. Inflation has given opponents of the Democrat party fuel for their campaign rhetoric.
On Tuesday, the Labor Department announced that the consumer price index jumped 8.5% in March from the previous year — this has been the biggest year-over-year increase since December 1981.