On Monday, Fed Chairman Jerome Powell vowed that the Fed was ready to take tough action on high inflation. He said officials are ready to hike rates until inflation is under control and warned that the increases could get more aggressive. “We will take the necessary steps to ensure a return to price stability,” he said. “In particular, if we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so. And if we determine that we need to tighten beyond common measures of neutral and into a more restrictive stance, we will do that as well.” After Powell’s remarks, Goldman Sachs said it now expects the Fed to hike interest rates by 50 basis points at both the May and June meetings.

 

Business Insider/Harry Robertson
Goldman Sachs now expects the Fed to hike 50 basis points in both May and June after Powell’s tough talk

Goldman Sachs has said it now expects the Federal Reserve to hike interest rates by 50 basis points at both the May and June meetings, after Chair Jerome Powell said he was open to moving faster in the fight against inflation.

“The labor market is very strong, and inflation is much too high,” Powell said Monday at the National Association for Business Economics.

The Fed chief stressed the need to move quickly, saying: “If we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so.”

Read the full story, here.

 

Financial Times
Money Clinic podcast: How can investors buy gold?

When market uncertainty rises, the gold price usually follows — and this year has been no exception.

Investors traditionally turn to gold as a “haven investment” during volatile times. The Ukraine war and rising global inflation have promoted gold to trade at prices not seen since the onset of the pandemic in 2020. But how could it function as a part of your investment portfolio?

You can read the full article, here.

 

CNBC/Kate Dore
Americans are pausing investments because of the Russia-Ukraine war. Here’s what it could cost them

The ongoing Russia-Ukraine war is degrading Americans’ financial outlook, sparking the desire to save more and postpone investing, according to a survey from MassMutual. But steering clear of stock market volatility may be a mistake, financial experts say.

Two-thirds of Americans worry the conflict will hurt their wallets, with nearly half eager to save more cash and 42% delaying investments, the report found.

“For a year that started with such hope and optimism, many are extremely concerned about the U.S. economy,” said Amanda Wallace, head of insurance operations with MassMutual, pointing to stress about day-to-day expenses and financial insecurity.

You can read the full story, here.

 

 

 

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