The Fed Is Battling Inflation Right — Here’s Why
The clincher in this year’s unsteady market is inflation.
Threats of a recession, supply chain issues, gas prices — these are real problems affecting all of us. Every day.
But like I said on Monday, market volatility is also driven by fear.
We saw that when the market sold off this week, after the Federal Reserve raised interest rates by another 75 basis points.
This Wednesday’s FOMC meeting told me that the Fed’s ongoing battle will continue.
But Fed Chair Jerome Powell is a man with a plan.
This summer, we saw peak inflation at 9%.
During the FOMC meeting, when Powell was asked if he could reach his goal for 2% inflation, he had his answer ready.
He basically said: “Watch me.”
This is a hot take, I know. But here’s why I think he and the Fed are doing the right thing.
(If you’d like to read a transcript, click here.)
My career on Wall Street started while I was in college. I spent a summer interning for Merrill Lynch in the middle of the ‘90s bull market. I was fascinated with trading, and as a result, after college, I joined Salomon Brothers in the famed mortgage bond trading department. Later, I spent time at Citigroup working with credit derivatives. Eventually, I needed to walk away from the excess of Wall Street. That’s when I joined Banyan Hill in 2017. Now I help readers get ahead of the market and build their retirements.