Kevin Warsh's Inflation Stance Makes These Cheap Dividend Stocks Look a Lot More Attractive
Inflation is running hot, and the Fed is raising interest rates, but consumers aren't likely to pull back on the products these companies sell.
Overview
After 100 days at the head of the Federal Reserve, Kevin Warsh gave a speech outlining the economic situation. While employment has been stable, which is positive, Warsh was clearly more concerned about inflation: "Inflation is running above our 2 percent target. So the Fed's predominant focus right now should be on prices."
He went on to note that, "Price stability is not self-executing, nor is inflation necessarily mean-reverting. It is the Fed's job to deliver stable prices." The key Fed tool for dealing with inflation is adjusting interest rates, which is a blunt instrument, at best. With one rate increase already in the books, it seems likely that more are on the way. Which is why investors may want to consider high-yield healthcare stocks like Medtronic (NYSE: MDT) and Pfizer (NYSE: PFE). Here's a look at each one.
Image source: The Federal Reserve.
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Originally published at www.fool.com.