Front Page|Our Services|Our Team|Client Center|Financial News|Events|Contact Us

Financial News

More Articles  Printer Friendly Version

 

Fed Changes Its Inflation Stance

4981 1

The Federal Reserve has abandoned its “inflation is transitory” stance and says inflation is “persistent.” Stocks lost 2% from last week’s all-time closing high.

4981 3

The change in Fed policy is illustrated in this chart by Fritz Meyer, an independent economist. The Fed had been predicting inflation would peak at 4.1%. But its inflation benchmark, the Personal Consumption Expenditure Deflator, shot past 4.1% to 5% in October.

On Wednesday, at a press conference, the Fed chief admitted inflation has been more persistent than expected and said the Fed now expects inflation to peak at between 5.3% and 5.4%, shown in the dotted gray lines in the chart above. The peak will occur in the first quarter of 2022, according to the Fed forecast, and then collapse to 3% or less in the second quarter of 2022.

4981 4

The Standard & Poor’s 500 stock index closed Friday at 4,620.64. The index lost -1% from Thursday and -2% from last week, when it closed at an all-time high. The index is up +69.5% from the March 23, 2020, bear market low.

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances. The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions. This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.


Email this article to a friend


Index
What A Difference A Week Makes
Amid Stock Market Turmoil, +2.3% Growth Projected In 2022
Staying On Track Amid The Ukraine And Inflation Crises
For Investors, 2022 Is Turning Into A Test
Is The Economy Brightening? Or Is The Federal Reserve Slamming The Door On Growth
Financial Economic News In Perspective
Stocks Closed Lower This Week On Inflation Fears
The Main Risk To Investors Now Is Federal Reserve Policy
Service Sector Jobs Are Catching Up
Stocks Returned +8.3% More Annually Than 90-Day T-Bills In Past 20 Years
Perspective Amid A Moment Seeming Fraught With Investment Risk
Two Years After The Pandemic Began
Turning The Page On A Dark Period In History
Russia-Ukraine War Erupted And Inflation Worsened But Outlook Drove Stocks Higher For The Week
Investment Perspective Amid Risks Of Fed Tightening, Covid Variants, And European War
S&P 500 Lost -1.9% Friday; Latest U.S. Economic Data Are Strong

This article was written by a professional financial journalist for Vantage Point Financial Services, LLC and is not intended as legal or investment advice.

©2022 Advisor Products Inc. All Rights Reserved.
© 2022 Vantage Point Financial Services, LLC | 329 Regency Ridge Drive, , Centerville, OH 45459 | All rights reserved
P: 937-432-1111 | F: 937-432-1110 markblack@vantagepointadvisor.com |
Contact Us

Securities offered through First Allied Securities, Inc., A Registered Broker/Dealer, Member: FINRA / SIPC.
Advisory services are offered through First Allied Advisory Services, Inc., A Registered Investment Adviser.

This site is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security which may be referenced herein. We suggest that you consult with your financial or tax advisor with regard to your individual situation. This site has been published in the United States for resident of the United States. Persons mentioned in this site may only transact business in states in which they have been properly registered or are exempt from registration.

Privacy Policy | ADV