Inflation, Interest Rates, & Indiana Jones
Stop me if you heard this already—roughly half the population wasn’t alive last time inflation was at this level.
It’s true. According to IMDb.com, Raiders of the Lost Ark was the #1 movie at the box office the last time prices were rising at a rate of 9% a year.
In economic circles, the most widely followed inflation barometer, the Consumer Price Index, is considered a lag indicator, meaning that by the time it’s reported, prices likely have changed. The question is, are prices continuing to trend higher or are they moving lower?
The Fed will attempt to answer that question at its July meeting, when it makes a decision about short-term interest rates. There’s speculation rates could jump as much as 1% to curb inflation. But the Fed has to watch for a backfire, as a 1% move may send a desperate signal to the financial markets.
High inflation is a pain in the wallet, but nothing lasts forever. In the meantime, try not to watch the markets too closely, and go to the movies this summer. Who knows? We might be watching history in the making.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.
Dr. Jason Van Duyn
AQuest Wealth Strategies
Dr. Jason Van Duyn CFP®, ChFC, CLU, MBA is a Registered Representative with and Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA & SIPC. The LPL Financial registered representative associated with this site may only discuss and/or transact securities business with residents of the following states: IN, IL, TX, MI, NC, AZ, VA, FL, OH and CO.