The head of research at Murenbeeld & Co. told Kitco News that consumers should brace for higher inflation for the next four-five years. She also warned that inflation could remain between 3-4% during that time. In other news, stocks dropped Tuesday as Fed Chairman Jerome Powell told Congress that plans to taper asset purchases by $15 billion each month may no longer be appropriate, and the central bank may need to move quicker.
Kitco News/Neils Christensen
Inflation is here to stay no matter what the Fed says or does – Murenbeeld & Co.
The Federal Reserve is looking to tighten its monetary policy in 2022 and even speed up the reduction of its monthly bond purchases; however, there is little they will be able to do about the global supply disruption that is driving inflation higher, according to one market analysts.
In a recent telephone interview with Kitco News, Chantelle Schieven, head of research at Murenbeeld & Co., said consumers should brace for higher inflation for the next several years as it will take time to repair the global supply chain.
“It could take four to five years to completely fix the damage the COVID pandemic caused to the global supply chain. Companies are resourceful, and they will find short-term fixes and other methods, but it will push costs up,” she said.
You can read the full story, here.
CNN Business/Julia Horowitz
The Fed’s high-wire act just got even more perilous
Investors were spooked by the discovery of the new Omicron variant of the coronavirus. Now, they’re contending with another wrinkle in the outlook: The Federal Reserve could be prepared to roll back stimulus measures faster than planned because of persistent inflation.
What’s happening: Stocks fell sharply on Tuesday after Fed Chair Jerome Powell told Congress that plans to taper asset purchases by $15 billion each month may no longer be appropriate, and the central bank may need to move quicker. The S&P 500 and Dow both closed down 1.9%, while the Nasdaq Composite finished the day 1.6% lower.
In a note to clients, strategists at UBS laid out the current situation this way: “Omicron + taper = volatility.”
Continue reading, here.
Investopedia via Yahoo Finance/Jim Probasco
The 11 Worst Retirement Mistakes: Sidestep Them
To avoid the worst retirement mistakes, you have to be realistic about your future plans and think ahead. Unfortunately, it’s all too easy to make the wrong financial moves when preparing for retirement. According to the Federal Reserve, 37% of non-retired adults believe their retirement savings are on track. But none of the 44% who say their savings are not on track—or the remaining 19% who are unsure—likely set out to sabotage their retirement.
Start (or continue) your journey by sidestepping these 11 financial mistakes.
Keep reading, here.