The Fed's Latest Inflation Forecast Just Got Uglier. Here's How It Might Affect Your Investments.
Investors need to understand the relationship between interest rates and stock prices.
The Fed's Latest Inflation Forecast Just Got Uglier. Here's How It Might Affect Your Investments.
Overview
All the attention continues to gravitate to artificial intelligence (AI). But with the ongoing geopolitical conflict in the Middle East, inflation is back in the spotlight.
The Federal Reserve's preferred measure of inflation is the personal consumption expenditures (PCE) price index. In April, it increased by 3.8% year over year, the highest since May 2023.
Details
Federal Reserve Governor Lisa Cook contends that if inflation stays elevated, the central bank will have to consider raising interest rates at some point in 2026. This might come as a surprise to those who started the year thinking the Fed was going to cut rates.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.
