by watifurdadpulledout
I know the Fed has loaded its chamber with 5.25% of interest rate hike and maybe 50bps more are coming over the next couple months. But the Core Inflation rate is still at 5.25%. The last CPI came in at 4.9% and is not going down to 2% anytime soon. If anything summer might be the time for a spike in the CPI. Amount of jobs added has beat expectations this month from est. of 190k to 339k. These are the numbers even after the banks are causing a credit crunch. All of these things force me to see only one thing in the future – Stagflation. Fed will not be able to lower rates anytime soon and any bond holders waiting for a rate cut will be waiting a loooong time. The only alternative I see during stagflation is real commodities like gold, oil and agriculture futures.
Are people still thinking we are going to cut rates this year?