Wednesday, December 7, 2022

The Fed's Job Isn't Finished Yet

By Joel Litman

Editor's note: Over at our corporate affiliate Altimetry, Joel Litman – the company's founder and chief investment strategist – believes the U.S. Federal Reserve is still poised to hike rates in the months ahead. In today's essay, he explains why – and examines the big question of when the rate hiking might ease up... Inflation is getting lower... Yet it's still not low. Last month, the U.S. Department of Labor released inflation data for October. The Consumer Price Index ("CPI"), which tracks the change in price of consumer goods, increased 7.7% in October 2022 compared with 2021. Believe it or not, investors took it as an encouraging sign. The CPI was 8.2% year over year in September and 9.1% in June. The market took off on the positive news. Things are definitely better now than they were in June. That being said, inflation is still historically high. We haven't seen levels like these since the 1980s. Here's why investors were excited... The Federal Reserve is looking for some s

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