The bullish market for many years has softened his outlook due to inflation.
The Federal Reserve Board’s Phil Orlando expects the Federal Reserve to raise interest rates six-fold over the next two years, curbing significant price increases from cars to shelters and food.
The company’s chief equity strategist told CNBC, “We expect a two-quarter rate hike from the Fed in the second half of next year and another quarter rate hike in 2011.” “”Trading country” on Wednesday.
With $ 634 billion in assets under management, Orlando is concerned about the latest inflation rates.Both consumer spending and CPI Accelerating at a fast pace in 30 years..
The Commerce Department reported the price of consumer spending last week Or core PCE increased 4.1% from a year ago to October.. The Fed’s most trusted inflation gauge does not include food and energy.
Consumer Price Index or CPI It also surged in October. The Ministry of Labor’s indicators that track the amount consumers pay for goods include food and energy.
“Given the inflation surge we’ve seen recently, if the Fed accelerates its pace, it wouldn’t frankly surprise me,” he said. “Once the tapering is complete, we expect some rate hikes,” he said.
According to Orlando, that could surprise Wall Street.
“I think the Fed is talking to some extent a good game with the Biden administration. Inflation temporary or temporary,” He said.
“They plan to remove accommodation at a moderate pace in the next two years or so to see if they can avoid inflation and return the spirit’s stuff to the bottle,” he said. rice field.
In a rising rate environment, Orlando especially likes the stocks within energy, material When industry Space is reserved because you can recover rising business costs, raise prices, and increase margins.
“What we’re doing is investing in companies that are navigating this situation in a fairly good way,” Orlando said.
Massive inflation likely to raise the federal government six times: the federal government
https://www.cnbc.com/2021/11/28/massive-inflation-to-likely-push-fed-to-hike-rates-6-times-federated.html Massive inflation likely to raise the federal government six times: the federal government