By December 13, 2022 (Investorideas.com Newswire) The Federal Reserve is likely to raise interest rates on Wednesday – despite data showing today a slowdown in inflation – and it could be “playing with fire” by doing so, warns the CEO and founder of one of the world’s largest independent financial advisory, asset management and fintech organizations.
The warning from Nigel Green of deVere Group comes as the latest U.S. inflation report shows that CPI for November came in at 7.1%, below expectations of 7.3%.
He says: “Tomorrow, [Wednesday] members of the U.S. central bank’s Federal Open Market Committee (FOMC) will reveal their decision on interest rates largely based on this data.
“We expect a seventh consecutive interest rate hike to be announced by Fed Chair Jerome Powell – despite the numbers showing that price growth continued to decline last month. It is likely to impose a half-percentage point hike, which is less than previous ones.”
He continues: “The central bank will argue it needs to continue with rate rises to bring inflation back to target.
“However, with signs of slower prices and a cooling labor market, they could be playing with fire.
“It’s a fine line that they have to tread. Housing inflation is keeping wider inflation high, but the Fed must ensure that this doesn’t overshadow the broader picture and continue to overdo the hikes, which would make a U.S. recession deeper and longer – and have a serious global impact.”
Ahead of the announcement by Jerome Powell on Wednesday, markets will be buoyed by the CPI data.
“Stocks will surge and bond yields and the U.S. dollar will go lower on hopes that the Federal Reserve can be less aggressive in their battle against inflation,” says Nigel Green.
He concludes: “After the positive inflation data, investors will be hoping that the Fed doesn’t now dash the glimmer of hope for a soft economic landing.”
t: +44 207 1220 925
e: george@priorconsultancy.co.uk
Twitter: @PriorConsults
deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.
More Info:
This news is published on the Investorideas.com Newswire – a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com
Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp
