Wharton Professor Jeremy Siegel told CNBC he’s worried that “one more bad inflation report” could trigger a stronger reaction from Fed officials, which would cause some trouble for the stock market. He believes the market won’t be ready for any U-turn chairman Jerome Powell may take. In other news, gold investors are keeping a close eye on the president’s pick for the next Fed chair. Experts say gold would climber higher if Biden selects Federal Reserve Governor Lael Brainard.

 

CNBC/Stephanie Landsman
Market is ‘one more bad inflation report’ away from a correction, Wharton’s Jeremy Siegel warns

Long-term market bull Jeremy Siegel expects a serious pullback that it isn’t tied to the Covid-19 surge risks.

His tipping point: a drastic change in Federal Reserve policy in order to deal with hot inflation.

“If the Fed suddenly gets tougher, I’m not sure that the market is going to be ready for a U-turn that [chair] Jerome Powell may take if we have one more bad inflation report,” the Wharton finance professor told CNBC’s “Trading Nation” on Friday. “A correction will come.”

The consumer price index surged 6.2% in October, the Labor Department reported earlier this month. It marked the biggest gain in more than 30 years.

Siegel criticizes the Fed for being far behind the curve in terms of taking anti-inflationary action.

You can read the full story, here.

 

Kitco News/Anna Golubova
Is Fed making a mistake? Big market risk ahead as gold looks to $1,900 – analysts

According to analysts, with all eyes on the U.S. President Joe Biden’s Federal Reserve Chair pick, gold is waiting for its next catalyst to take it to $1,900 an ounce, with markets eyeing year-end volatility.

Gold is wrapping up this trading week down 1%, with December Comex gold futures last trading at $1,848.60, down 0.69% on the day.

One of the main events the market is watching very closely is Biden’s Fed Chair pick, which could be announced as soon as this weekend. According to PredictIt.org, the current Fed Chair Jerome Powell is leading the race, with Federal Reserve Governor Lael Brainard in the second top spot.

You can read the full story, here.

 

Go Banking Rates via Yahoo News/Georgina Tzanetos
Retirement 2022: IRS Announces New COLA Guidance, 401(k) and IRA Income Limit Increases

The Internal Revenue Service recently announced that the amount individuals can contribute to their 401(k)s in 2022 has officially increased to $20,500. This is a $1,000 increase from 2021 and 2020.

The IRS also issued guidance regarding all of the cost-of-living adjustments (COLA) affecting dollar limitations for pension plans and other retirement-related items for 2022. These limits are required to be increased every year to account for COLA. Other limitations applicable to deferred compensation plans are also affected by these adjustments.

Continue reading, here.

 

 

 

 

 

 

 

 

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