021 Inflation Update 07-14-23
Episode 021: Welcome to “Markets with Megan,” where Megan Horneman, the Chief Investment Officer of Verdence Capital Advisors, provides insightful economic analysis. In this episode, Megan discusses the latest economic data, focusing on inflation and its impact on the Federal Reserve’s interest rate decisions.
This week, the economic reports on both consumer and producer inflation revealed positive news. The inflation figures came in lower than anticipated by economists, indicating a softening of inflationary pressures at both levels. However, Megan emphasizes that these numbers do not alter the Federal Reserve’s plan to hike interest rates this month.
To understand the Fed’s course of action, three critical factors are under their scrutiny: wage inflation, service inflation, and housing inflation. While there are signs of improvement in all three areas, they remain elevated beyond the Fed’s comfort level. As a result, Megan predicts that the Fed will likely raise interest rates one more time. The situation will continue to evolve leading up to the Fed’s next meeting in September, but currently, it does not alter their trajectory, and they still have more work to do before declaring the end of the tightening cycle.
Stay informed and gain valuable insights as Megan delves into the intricacies of economic data. If you have any questions or feedback, please don’t hesitate to reach out to us at [email protected]. Thank you for joining us on this episode of “Markets with Megan.”
