Home|Who We Are|Our Services|Resources|News Center|Contact Us|Client Access
More Articles  Printer Friendly Version

 

Federal Reserve Study: Consumers Do Not Expect Inflation Spike Will Last Long

5000 1

Consumers do not expect the spike in inflation will last long. That’s the conclusion of six economists from the New York Federal Reserve Bank.

“Besides its tragic human toll, the pandemic has brought about extraordinary economic dislocation, including unprecedented supply and demand imbalances that have resulted in a sharp rise in inflation,” says a Thursday, Feb 14, post from the six economists who examine the results of a monthly survey of consumer expectations for inflation conducted by the New York Fed.

5000 2

“Our measures indicate that consumers seem to recognize the unusual nature of the current inflation experience,” concluded the economists.

In December, the annual inflation rate hit a 40-year high. Last week, the Bureau of Economic Analysis reported inflation surged higher still, to a 7.5% annual rate in January, adding to inflation fears. In the early 1980s, inflation resulted in stiff rate hikes by the Federal Reserve, causing a long recession from July 1981 to November 1982. Recessions trigger bear markets.

Which makes the New York Fed’s analysis of this monthly survey of consumer inflation expectations important and timely: Consumers in January expected a 5.8% inflation over the next 12 months, and a decline to 3.5% in three years.

Although inflation is alarming, the Fed’s analysis is one of several signs the inflation spike will not last long.

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances. The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions. This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.


Email this article to a friend


Index
Investor Alert: Bear Markets Bring Out Advice And Scams Preying On Fear
What Happens With Your Assets When You Die?
The Worst Of The Bear Market Is Over, Says Poll Of Professional Wealth Advisors
Feeling Stressed About Money? You’re Not Alone
Answering Some Difficult Personal Financial Questions
What’s Your Long-Term Plan?
Are You Checking Your Investments Daily And Worried About Your Financial Future?
Getting A Good Estate Planning Result Is Hard
The Facts About The Current State Of Financial Economic Dissonance
Five-Year Return On 13 Different Investments And Building A Portfolio That Outlives You
IRA Strategies For 60- To 72-Years-Olds
New Research Warns Consumers On Long-term Care Insurance Policies
Gurus Are Not Personal Financial Advice Professionals
Managing Your Wealth
Perspective On The Eve Of The First Quarterly Loss In Stocks In Seven Quarters
The Sad History Of Long-Term Care Insurance

This article was written by a professional financial journalist for Responsive Financial Group, Inc and is not intended as legal or investment advice.

©2022 Advisor Products Inc. All Rights Reserved.
© 2022 Responsive Financial Group, Inc | 204 W Wing St, Arlington Heights, IL 60005 | All rights reserved
P: 847-670-8000 | F: 847-590-9806 ben@rfgweb.com |
Disclosure | Contact Us
Responsive Financial Group, Inc. is a fee-only registered investment advisory firm in the State of Illinois. Information on this site is compiled from multiple locations and is believed to be accurate. Incorrect information may come from these outside sources. Should you notice anything please notify us immediately. Thank you!