Sentences with phrase «inflation leads to higher inflation»

In addition, to the extent higher realized inflation leads to higher inflation expectations — and in turn, higher interest rates — financial stocks, another big value sector, also benefit.

Not exact matches

So that policy response is going to lead to slightly higher inflation in terms of wages and slightly higher interest rates, and the market had to respond to that.

Many on the right are understandably concerned by the Fed's unprecedented policy actions, fearing they will lead to dramatically higher inflation and economic instability.

«The benefits of tax reform, global synchronized growth, [and] employment gains will extend the life of our economic expansion and eventually lead to inflation and higher interest rates.

A related question I sometimes hear — which bears also on the relationship between monetary and fiscal policy, is this: By buying securities, are you «monetizing the debt» — printing money for the government to use — and will that inevitably lead to higher inflation?

Higher wages can point to higher inflation, which, in turn, could lead the Fed to raise interest rates more aggressHigher wages can point to higher inflation, which, in turn, could lead the Fed to raise interest rates more aggresshigher inflation, which, in turn, could lead the Fed to raise interest rates more aggressively.

The fuel price increases will filter through the economy, said McTeague, leading to less discretionary spending, higher inflation rates and fuel premium increases for truck, rail and air transport of goods.

But having more room to cut rates isn't the only reason leading some economists to flirt with higher inflation.

Workers expect their earnings to keep pace with inflation, and a more substantial rate will likely lead to demands for ever higher wages.

Finally, in a nominal GDP targeting regime, a decline in r - star caused by slower trend growth automatically leads to a higher rate of trend inflation, providing a larger buffer to respond to economic downturns.

This would likely lead to further pressure on labor resources, higher wages and, over time, somewhat higher inflation.

It is also possible that a period of very low interest rates will eventually lead to higher inflation for land and construction work, as is normally required to bring forth more supply of a particular good or service.

In January, expensive commodities led to inflation, higher interest rates in developing markets, riots in the Arab world, and lower economic growth.

In December, inflation in the 19 countries of the eurozone fell below zero and raised the specter of deflation, a sustained decline in prices that can lead to higher unemployment and that is notoriously difficult to reverse.

O'Neil said he's skeptical about the assumptions that a Trump agenda of increased government spending and tax cuts will be fully enacted and lead to faster growth, higher inflation and bigger budget deficits.

Since the election, investors appear increasingly convinced that a Trump administration will lead to higher inflation, and potentially higher growth as well.

It also lead to higher inflation, which reduced the real value of Iceland's debts, making them easier to repay.

U.S. food - price inflation may top the government's forecast as higher crop, meat, dairy and energy costs lead companies including Nestle SA, McDonald's Corp. and Whole Foods Market Inc. to boost prices.

In principle, keeping policy sufficiently accommodative to achieve maximum employment could lead inflation to be too high.

Under these conditions, there is substantial risk that the additional stimulus from larger deficits will lead to higher inflation and interest rates.

This is because interest rate changes have their largest effect on inflation risk, while stronger macroprudential settings will lead to a higher quality of household indebtedness over time.

The economy is growing nicely and unemployment is falling, factors that typically lead to higher inflation — even before Congress cuts taxes, as it seems set to do.

While the positives include the unemployment rate falling to 42 - year lows, a weaker pound sterling is leading to a spike in consumer inflation; in the event of a negative outcome in the negotiations with the European Union, the UK currency could slide further, leading to a rise in consumer prices and leaving the Bank of England in a very precarious situation in which easing interest rates will be ruled out due to high inflation, and hiking rates will lead to a slowdown in economic activity.

The selling has raged on in the days since, fueled partly by fear that higher inflation would lead the Fed to accelerate its interest rates hikes and weaken the economy and the stock market.

That puts pressure on corporate profit margins and theoretically should lead to higher inflation.

Proposals for fiscal stimulus via tax cuts, government spending and regulatory reform have led to expectations of stronger economic growth, higher inflation and higher interest rates.

Higher food and oil prices led to a marked increase in consumer price inflation throughout the region in mid 2004, particularly in Thailand, Singapore, Korea and the Philippines.

The introduction of the major elements of the new tax system in July will lead to temporarily higher CPI inflation in the September quarter 2000, followed by a period of time during which reductions in various taxes flowing through to prices will reduce measured inflation.

The important thing to remember is that the government will want to avoid the expansion that was «associated with the earlier plan that led to higher CPI, asset price inflation and a surge in lending to non-priority projects,» says J.P. Morgan.

But modest economic growth and rising wages have led to concerns about rising inflation and pushed interest rates higher.

High inflation rates, slow economic growth, loss of global value of currency, and social and political uncertainty leads to increment in prices of precious metals.

As an aside, the further the dollar weakens the more expensive it will be for the US to purchase foreign goods, which will lead to higher inflation.

As a general rule, countries attempt to keep inflation fixed at a rate of 2 percent as moderate levels of inflation are acceptable, with high levels of deflation leading to economic stagnation.

In other words, I suspect that fewer immigrants will lead to (modestly) higher inflation in the UK longer term.

Domestic inflationary pressures, associated with higher wages and incomes, will lead to higher inflation for non-tradable goods and services but, at the same time, the gradual pass through of the initial exchange rate appreciation will lead to lower inflation for tradable goods and services (whose prices in foreign currency terms depend to a significant extent on global considerations).

If this selloff is precipitated by higher interest rates, weaker dollar and higher inflation and the Fed decided to start cutting rates that would be a further mess for the U.S dollar and potentially even more inflationary and could lead to even higher long - term interest rates.

The referendum result is expected to trigger political and economic uncertainty in the UK, which will lead to a weaker currency, higher inflation, and lower growth, as well as significant consequences in the EU and around the globe.

In terms, I think of inflation and bond markets, it took six, seven, eight, maybe 10 years of high inflation in the 1970s before you had Paul Volcker brought in to say «enough is enough,» and then again whether it's led by American monetary policy but similar moves in Europe, obviously in the UK, a significant tightening of monetary policy because people got fed up with inflation and I don't think that we are kind of yet at the point where real wages have been suppressed so much by that irritation that inflation is always running ahead, life is becoming more expensive, so we need the central bank radically to change their policy.

During periods of inflation, workers often demand raises which leads to higher costs for business which, in a self - reinforcing cycle, results in even higher rates of inflation.

The UK has voted to leave the European Union, setting off what is expected to be protracted political and economic uncertainty, which will lead to a weaker currency, higher inflation, and lower growth, says Jacob Nell, Morgan Stanley's UK economist.

Surging deficits will likely require greater Treasury issuance, which will lead to higher rates, even if inflation doesn't rise much more.

Wage bargaining generally may not be very responsive to unemployment; wage bargains in a particular leading sector may reflect conditions in that sector, but then be transmitted, through concerns about relativities, into other sector s which experience quite different conditions; wage negotiator s may have unduly high expectations of future inflation in mind when striking their bargains.

We believe that a high degree of economic confidence for the euro zone will lead the ECB to hike rates next year, even though inflation will likely remain far from the bank's price - stability objective.

And while easy money eventually leads to higher inflation, that threat could still be several years away.

Once consumers» inflation expectations pick up, they typically demand higher pay, which can lead companies to raise prices to cover the costs.

We believe that inflation will continue to increase moderately in 2018, which likely will lead to moderately higher interest rates as well.

As we mentioned above, higher inflation leads investors to consider other storehouses of value for protection.

Historically, fear of high inflation has led the Federal Reserve to step up its short - term interest rate increases.

An improving growth backdrop should eventually lead to a sustainable move higher in eurozone inflation, justifying a removal of monetary accommodation.

When Republicans, for instance, damn Democratic leaders for high prices and inflation, some individuals may be led to blame the Democratic Party and vote Republican despite misgivings about Republican preferences for the wealthy at the expense of the poor.