Tag Archives: Inflation

Interactive Brokers founder Thomas Peterffy says he is worried about the higher interest rates coming soon from a Federal Reserve behind the curve on inflation.  “I am worried about high interest rates because the Fed is talking about raising rates to 1% or even 2%. Inflation is 7% — 1% or 2% doesn’t mean anything. If they really wanted to stop inflation, they would have to raise rates to 4%, 5%, 6%,” Peterffy said on Yahoo Finance Live. Peterffy thinks the Fed wouldn’t go that high on… Source link

Higher pay to retain and attract employees impacted Goldman Sachs profits, and the big bank’s CEO says companies across industries are experiencing the same thing. “There is real wage inflation everywhere in the economy. Everywhere,” Goldman Sachs CEO David Solomon told analysts on the company’s fourth quarter earnings call on Tuesday. In the final quarter of 2021, the bank logged $3.2 billion in expenses associated with compensation and benefits — a 31% increase compared to the same… Source link

A whipsawed Wall Street can expect to see even more volatility ahead as the Federal Reserve gears up its first rate hike campaign of the pandemic era, one investor told Yahoo Finance this week. The Dow dropped 200 points Friday, as markets closed out a volatile week with its second consecutive weekly loss. The new year has gotten off to a rough start, following underwhelming earnings reports from major banks and lackluster economic data — adding to the risk of higher rates as inflation… Source link

This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe Friday, January 14, 2021 Don’t look now but the supply crisis isn’t getting better No, it’s not your imagination: Shelves in a lot of stores are still empty, and that item you ordered is taking longer than normal to reach you. All of which means the Great Supply Chain Crisis that many hoped we would leave behind in 2021, is clearly becoming a… Source link

Lael Brainard, President Joe Biden’s pick for the number two spot at the nation’s central bank, said the Federal Reserve stands ready to quell inflation through higher interest rates. “We do have a powerful tool and we are going to use it to bring inflation down over time,” Brainard told the Senate Banking Committee in her confirmation hearing Thursday. Brainard is currently a Fed governor, where she has served since being appointed by the Obama administration in 2014. If confirmed by… Source link

This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe Thursday, January 13, 2021 Surging prices are now both an economic and political risk “Annus horribilis,” a Latin term that means “horrible year” is a term once famously deployed by the Queen of England to describe 1992, a tumultuous year upon which she declared she would not regard fondly. Given current trends, the same label may yet apply… Source link

U.S. consumer prices rose at their fastest rate in nearly four decades in December, with inflationary pressures rippling through the economy as supply chain bottlenecks persisted alongside elevated demand.  The Bureau of Labor Statistics’ December Consumer Price Index (CPI) posted a 7.0% year-over-year increase at the end of 2021 in the fastest increase since 1982. This matched consensus estimates, based on Bloomberg data, but accelerated from November’s 6.8% increase. On a month-over-month… Source link

Stocks rose Wednesday as investors eyed a new report on inflation, which showed another decades-high rate of price increases across the recovering economy. Still, this came a day following remarks from Federal Reserve Chair Jerome Powell reasserting that the central bank would step in as needed to rein in rising prices.   The Bureau of Labor Statistics’ December Consumer Price Index (CPI) showed prices rose at a 7.0% year-over-year rate at the end of 2021, marking the fastest increase since… Source link

Inflation has become one of the top economic issues in the U.S., and the Biden administration is acting accordingly with various policy actions. U.S. consumer prices rose 0.5% in December and 7.0% on a year-over-year basis, according to the Bureau of Labor Statistics. It’s the fastest rate since 1982.  Two of the biggest drivers of price spikes over 2021 have been in food and energy which is likely the reason the White House has focused on both of those sectors both for inflation as well as… Source link

Wall Street’s rate-hike jitters have wreaked havoc on high-growth tech stocks — and Cathie Wood’s Ark ETFs were front and center for the damage yet again. Still, Wood dismissed concerns over inflationary pressures, reaffirming an earlier assertion that deflation remains the focus for her firm during a webcast on Tuesday. The Ark Invest CEO also said that price increases were likely to ease as supply chain issues resolve. Wood’s remarks come amid Federal Reserve Chair Jerome Powell’s… Source link