The U.S. economy is taking some hard hits from ongoing turmoil in capital markets, plus growing
concerns over inflation.
Investor
concerns over inflation was reflected in Lipper funds data on Thursday, which showed U.S. - based inflation - protected bond funds attracted $ 859 million over the weekly period, the largest inflows since November 2016.
Protectionism tops the list of worries on Wall Street, the survey shows, far outpacing
concerns over inflation, terrorism and even the Fed itself.
Protectionism worries in the CNBC Fed Survey far outpace
concerns over inflation, terrorism and even the Fed itself.
In a client note on Friday, he argued
concerns over inflation were overblown.
There is a lot of
concern over inflation in the present era, but not a lot of structured thought about what drives inflation.
There is a lot of
concern over inflation in the present era, but not a lot of structured thought about what drives...
«Wall Street sources close to Mr. Buffett say that his stock investments in the past few years have been largely dictated by
his concern over inflation.
Not exact matches
Inflation concerns have been looming
over the strong earnings and economic fundamentals.
At that time, the markets dropped
over concerns about higher
inflation.
Stocks have been struggling all year to gain footing amid myriad fears
over trade tensions, the
inflation specter and
concern that while earnings have been strong, this might be as good as it gets.
«If they do target aggressively the 2 percent
inflation target, and undertake a significant amount of QE, that may have an impact on underlying JGB (Japanese government bond) yields as investors become
concerned over Japan's debt,» he said.
The Fed previously had signaled it plans to raise interest rates two more times this year, but some observers have expressed
concerns that the tightening monetary policy would accelerate
over fears of
inflation.
The result is very low long term real rates, sluggish growth expectations,
concerns about the ability even
over the fairly long term to get
inflation to average 2 percent, and a sense that the Fed and the world's major central banks will not be able to normalize financial conditions in the foreseeable future.
Credit
concerns typically create a spike in demand for default - free assets such as U.S. government liabilities, so even though there is a much larger float than is likely to be sustained
over time without
inflation as the ultimate outcome, credit
concerns tend to support the value of these liabilities and hence mutes immediate
inflation pressures (essentially, monetary velocity declines as these liabilities are sought as a default - free store of value).
Surveyed women business owners indicated more
concern than their male counterparts
over stock market performance (67 percent vs. 55 percent),
inflation (62 percent vs. 55 percent), low interest rate on savings (58 percent vs. 52 percent) and foreign competition (32 percent vs. 26 percent).
Over the past couple of years, the prevailing
concern was to limit the risk of an abrupt decline in growth, and to facilitate a return of
inflation to the target.
In addition, given stubbornly low
inflation and investor
concerns over global growth, there's also the prospect for an extension of Europe's current quantitative easing program, as many in the media speculated last week.
The centralised component of wage increases has become a progressively smaller part of the total
over recent years, thereby easing earlier
concerns that national wage increases would put a floor under future
inflation.
The Committee expressed
concern over low exports and weak
inflation.
On that occasion Australian bond yields rose significantly more than those in the US, reflecting market
concerns that Australia would not be able to maintain control
over inflation in an environment of strong global expansion.
News media are characterizing the debate
over whether or not to increase rates, as «Should we be more
concerned about the pace of job growth or the threat of
inflation?»
Not only did headline
inflation turn negative again (at -0.2 %), but core
inflation unexpectedly fell to 0.7 % y - o - y, a 10 - month low, raising new
concerns over the underlying trend in consumer prices.
ECB staff projections will be revised lower again, partly reflecting
concerns over weaker economic momentum and core
inflation.
«The downgrade reflects our
concerns over a deteriorating
inflation outlook and the long - term depreciation and volatility of Turkey's exchange rate,» S&P said in a statement.
Because the flexibility in our framework allows it, we reserve the right to choose our policy tactics so that our actions don't significantly worsen financial stability
concerns by opting for a policy path that aims to return
inflation to target
over a longer time frame than normal.
To temper any
concerns about the transfer of this power, the Government retained ultimate sovereignty
over the setting of the rate and granted only operational control
over the attainment of a centrally determined
inflation target.
It said: «The union's
concern about the political direction of the Government, as well as the industrial
concerns over continued calls for pay restraint in the public and private sectors while
inflation busts through the Government's targets.
The markets are beginning to grow very weary
over the strength of the dollar, and
inflation concerns are growing as deficit projections skyrocket and the Fed prints more and more money in an attempt to get credit flowing again.
This should be driven by a lessening of
concern over the European Union, along with a pickup in U.S. growth and
inflation.
While
inflation is lower now than at any time since the 1960s, many people are
concerned that investments, including Treasury securities, may lose purchasing power
over the long run.
While
inflation is a
concern, worrying
over a 2 % or 3 %
inflation rate shouldn't be alarming.
Weak economic growth, low
inflation, and
concern over the situation in the Middle East have led many to invest in safer assets.
Furthermore, as the underlying properties of the REITs increases in value, so does their rentals and distributions; so you don't need not be
concerned about
inflation because your passive income will steadily increase
over time.
That said, one thing that does
concern me about the foregoing model is that our «real»
inflation - adjusted version projects a 10 - year real total return for the S&P 500 of just
over 1 % annually.
In addition, given stubbornly low
inflation and investor
concerns over global growth, there's also the prospect for an extension of Europe's current quantitative easing program, as many in the media speculated last week.
Newspapers were filled with
concerns over stock market valuations, debt levels, a coming boost in fiscal stimulus driving up
inflation, and political risks from a new presidential administration.
Monetary Policy,
Inflation and the Federal Deficit should cause you
concern over your savings and retirement accounts because a «Bond Market Crash» will decimate your ability to retire for another decade.
In light of the improving economy, Mr. Hoenig was
concerned that a continued high level of monetary accommodation would increase the risks of future economic and financial imbalances and,
over time, would cause an increase in long - term
inflation expectations that could destabilize the economy.
Voting against the action was Esther L. George, who was
concerned that the continued high level of monetary accommodation increased the risks of future economic and financial imbalances and,
over time, could cause an increase in long - term
inflation expectations.
Contrary to the
concerns over income investments declining in an inflationary environment when
inflation erodes the return of income instruments, in a deflationary environment, income investments actually look more attractive.
With large US deficits, trade deficits, the quantitative easing already performed by the Federal Reserve, easy money policies, and worldwide debt
concerns, investors may rightly be cautious regarding the potential for
inflation over upcoming years.
Finally, a crucial economic motivator is
concern about
inflation, which has been increasingly a worry
over the last year.
These days the Fed seems more
concerned about
inflation than recession and had raised the federal funds rate to just
over 5 percent as of mid-2006 to head off what it fears is a potentially overheated economy.
«Despite meager
inflation growth, the Federal Reserve decided to raise rates 0.25 percent, which is likely attributed to future
inflation concerns over: a tightening labor market; limited labor productivity growth; and the Congressional Budget Office projecting large deficits due to the Republican tax plan,» said Joseph Kirchner, senior economist at realtor.com ®, in a statement.
When adjusted for
inflation, May's median remains 11 % below the 2007 high, though the nominal record comes amid fresh
concerns over the high cost of housing in California.
Concern over a slowdown in
inflation has recently pushed bond prices higher — and some bond yields sharply lower.