{"id":3807,"date":"2023-06-14T13:14:01","date_gmt":"2023-06-14T18:14:01","guid":{"rendered":"https:\/\/nakedpolitics.net\/?p=3807"},"modified":"2023-06-14T13:15:52","modified_gmt":"2023-06-14T18:15:52","slug":"us-inflation-the-fed-isnt-done-with-rate-hikes-yet","status":"publish","type":"post","link":"https:\/\/nakedpolitics.net\/?p=3807","title":{"rendered":"US Inflation: The Fed Isn\u2019t Done With Rate Hikes Yet"},"content":{"rendered":"\n<p>The latest US inflation report suggests that the Federal Reserve will pause interest rate hikes tomorrow (Wednesday), but investors need \u2026 Read more<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img decoding=\"async\" src=\"data:image\/svg+xml,%3Csvg%20xmlns='http:\/\/www.w3.org\/2000\/svg'%20viewBox='0%200%20714%20357'%3E%3C\/svg%3E\" data-lazy-src=\"https:\/\/nakedpolitics.net\/wp-content\/uploads\/2023\/06\/image-64.png\" alt=\"\" class=\"zeen-lazy-load-base zeen-lazy-load wp-image-3808\" width=\"714\" height=\"357\"\/><noscript><img decoding=\"async\" src=\"https:\/\/nakedpolitics.net\/wp-content\/uploads\/2023\/06\/image-64.png\" alt=\"\" class=\"wp-image-3808\" width=\"714\" height=\"357\" srcset=\"https:\/\/nakedpolitics.net\/wp-content\/uploads\/2023\/06\/image-64.png 300w, https:\/\/nakedpolitics.net\/wp-content\/uploads\/2023\/06\/image-64-293x147.png 293w\" sizes=\"(max-width: 714px) 100vw, 714px\" \/><\/noscript><\/figure>\n<\/div>\n\n\n<p>The latest US inflation report suggests that the&nbsp;<a href=\"https:\/\/www.valuewalk.com\/failing-federal-reserve-makes-mistake\/\">Federal Reserve<\/a>&nbsp;will pause interest rate hikes tomorrow (Wednesday), but investors need to \u201cstay grounded\u201d as more rate rises are likely this year.<\/p>\n\n\n\n<p>This is the warning from Nigel Green, the CEO and founder of deVere Group, one of the world\u2019s largest independent financial advisory, asset management and fintech organizations, as the Bureau of Labour Statistics releases the US CPI data today showing that inflation rose at a 4% annual rate in May, which is the lowest in 2 years.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Fed Is Likely To Pause Rate Hikes<\/h2>\n\n\n\n<p>He says: \u201cTuesday\u2019s report shows again that the prices rises, which have been hitting consumers, businesses and financial assets for two years, are decelerating.&nbsp; The 12-month increase was the smallest since March 2021.<\/p>\n\n\n\n<p>\u201cIt\u2019s a feel-good headline figure that will cheer investors as it will add further pressure on the Fed to pause its interest rate hike agenda.<\/p>\n\n\n\n<p>\u201cThe US central bank is now 15 months and 10 consecutive rate increases into its battle to cool red-hot inflation, but markets will be expecting that the latest CPI report will now be enough to convince officials to&nbsp;<a href=\"https:\/\/www.valuewalk.com\/sp-500-withstands-the-initial-selling-no-hike-tomorrow\/\">hit the pause button<\/a>.\u201d<\/p>\n\n\n\n<p>The deVere CEO expects that other sectors which have \u201cbeen outperformed so far in 2023\u201d by mega-cap tech stocks are likely to get a boost should the Fed, as is anticipated, pause rate hikes this week following the CPI data.<\/p>\n\n\n\n<p>\u201cThis will firmly signal that progress is being made in the battle to cool inflation and this will buoy investors across the board, finally providing a boost to sectors which have been unloved so far this year.\u201d<\/p>\n\n\n\n<p>As such, investors should be speaking to an advisor about the \u201cpossibility of an opportunity-packed new rally if the Fed, as is expected, pauses rate hikes this week.\u201d<\/p>\n\n\n\n<p>However, Nigel Green also issues a warning: \u201cInvestors need to stay grounded as despite a possible pause, more rate rises are likely this year, which would be a negative shock to stock markets.<\/p>\n\n\n\n<p>\u201cInflation is certainly coming down so far, but it is very, very gradual. It remains sticky and a long way from the 2% target, largely due to a tight labor market.<\/p>\n\n\n\n<p>\u201cTherefore, investors need to brace for at least another interest rate hike this year, even if the Fed skips this one.\u201d<\/p>\n\n\n\n<p>Diversification remains investors\u2019 best tool for&nbsp;<a href=\"https:\/\/www.valuewalk.com\/most-successful-stocks-of-all-time\/\">long-term financial success<\/a>. As a strategy it has been proven to reduce risk, smooth-out volatility, exploit differing market conditions, maximise long-term returns and protect against unforeseen external events.<\/p>\n\n\n\n<p>\u201cThe likely market relief rally that is expected if the Fed pauses could provide important opportunities for investors, but they shouldn\u2019t get overconfident that this is the end of the most aggressive monetary policy since the 1980s.<\/p>\n\n\n\n<p>\u201cThe Fed isn\u2019t done yet,\u201d notes the deVere Group CEO.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>Original Article: <a href=\"https:\/\/www.nxtmine.com\/economics\/us-inflation-the-fed-isnt-done-with-rate-hikes-yet\/\">https:\/\/www.nxtmine.com\/economics\/us-inflation-the-fed-isnt-done-with-rate-hikes-yet\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The latest US inflation report suggests that the Federal Reserve will pause interest rate hikes tomorrow (Wednesday), but investors need \u2026 Read more The latest US inflation report suggests that the&nbsp;Federal Reserve&nbsp;will pause interest rate hikes tomorrow (Wednesday), but investors need to \u201cstay grounded\u201d as more rate rises are likely this year. This is the warning from Nigel Green, the CEO and founder of deVere Group, one of the world\u2019s largest independent financial advisory, asset management and fintech organizations, as [&hellip;]<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-3807","post","type-post","status-publish","format-standard","hentry","category-economy"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/posts\/3807","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3807"}],"version-history":[{"count":2,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/posts\/3807\/revisions"}],"predecessor-version":[{"id":3810,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/posts\/3807\/revisions\/3810"}],"wp:attachment":[{"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}