Investors are well aware of the potential impact President Trump's tariffs could have on the economy.
However, almost everyone is overlooking how these new tariffs will impact the Federal Reserve's approach to managing interest rates.
You see, the Federal Reserve sets interest rates based on the current rate of inflation. And it's highly likely that the current rate of inflation will be directly impacted by the administration's new steel tariffs.
Start the conversation
Leave a Reply Click here to cancel reply.
You must be logged in to post a comment.
The news has been rife with rumors of rising inflation in recent weeks, leaving many investors wondering how to navigate the market.
One option is to panic – that's what Wall Street is doing.
However, Money Morning Capital Wave Strategist Shah Gilani knows we shouldn't be panicking.
We should be planning our first profit play...
by Shah Gilani
Start the conversation
Leave a Reply Click here to cancel reply.
You must be logged in to post a comment.
If you've been lulled to sleep by years of wonky Federal Reserve talking points about dangerously low to no inflation, you're about to get a rude awakening.
Inflation's back.
It's not headline news and, no, the Fed isn't running scared yet. But all that's about to change.
Strengthening U.S. GDP growth accompanied by newly enacted tax cuts, strong global growth, and record-high levels of consumer confidence, business confidence, and investor sentiment are driving equity markets higher along with prospects for rising inflation.
The Fed and central banks around the world want inflation, and they've done quite a bit to engineer it.
by
Start the conversation
Leave a Reply Click here to cancel reply.
You must be logged in to post a comment.
According to the Securities Industry and Financial Markets Association (SIFMA), in September 2016, an average of $722.6 billion in bonds traded every single day in the United States alone.
Nationally and globally, the bond market absolutely towers over the stock market – by nearly 35% worldwide and more than double in the United States.
Tens of millions of investors – especially retirement savers – own bonds, and conventional wisdom tells them to park between 50% and 60% of their wealth in those bonds.
But… according to a survey by Wells Fargo and Gallup, a measly 22% of investors really understand how bonds work.
Start the conversation