Scott Kahan On Inflation & The Roaring Twenties
Inflation is back…
Yes. People are confused and the markets are trying to interpret Fed Chair Powell’s comments on interest rates. I would counsel not to get too carried away with the headline news of the day. And if you are a long-term investor, don’t try to trade off inflation news.
Why are we seeing inflation creeping back?
You have to look at the recent past. Remember we are coming off pandemic lows in stock prices, GDP and jobs. As the economy rebounds, we have to expect jumps in the same places and ultimately in consumer prices. Which is why the Consumer Price Index has been trending up every month since January.