Economic Insights Newsletters
The annual rate of inflation has risen sharply since early 2021. As the U.S. economy has rebounded from the pandemic, massive government stimulus, supply disruptions, surging commodity and oil prices has put upward pressure on consumer goods and services for longer than policy makers anticipated. In response to runaway inflation the Fed recently raised the Fed Fund’s rate by 75 basis points (bp) – the biggest increase since 1994 – to a target of 1.50%-1.75%. Further, in an effort to douse out the inflation fire the Fed has signaled a 50 to 75 bp increase is on the table for the upcoming July meeting.
Written by Daniel Morgan, Senior Portfolio Manager