![]() "My sense is that Jay Powell and his colleagues at the Fed are quite relaxed about the prospects for inflation," Sheets, who once served as undersecretary of the Treasury for international affairs, wrote on Tuesday. In fact, it may even be good for the economy if a cocktail of monetary and fiscal stimulus is still able to trigger both inflation and fears of inflation, according to economist and former Treasury Department official Nathan Sheets. While equity traders may be grumpy about inflation's potential to erode the purchasing power of future profits, economists are trying to remind the world of a key couple of facts: Inflation is often a byproduct of economic growth and is likely temporary. "Our efforts are starting to work, but the climb is steep, and we have a long way to go." Silver linings "Today's report just underscores, in my view, how vital the actions we are taking are," the president said. ![]() President Joe Biden reiterated that message Friday, after the government reported a far-weaker-than-expected April payrolls figure. population vaccinated and businesses reopening, the Biden administration continues to advertise its infrastructure and family bills as urgently needed stimulus. Multiple rounds of stimulus checks, ramped-up unemployment benefits and eviction moratoria have all been deployed in the name of fostering Americans' demand to spend money and save small businesses. Trillions have been spent on various ways to curtail both the virus and its depressive impact on U.S. To an even greater extent than they did during financial crisis more than 10 years ago, policymakers on Capitol Hill and at the Fed have worked together to counter a pullback in demand to mitigate the impact of the Covid-19 pandemic. The Nasdaq Composite is down more than 5% in May alone.Īnd now, with trillions of Biden bucks pulsing through the economy and the Federal Reserve holding interest rates near zero - Wall Street is getting cold feet about a return of inflation. Growth-oriented companies, which tend to get hit hard by rising inflation via the Fed raising interest rates, sold off across the board ahead of and after the report. The Bureau of Labor Statistics showed that CPI accelerated at its fastest pace in more than 12 years in April. On face value and taken in isolation, the government's inflation report Wednesday could be unsettling. Price growth remained firmly below the threshold until well into President Donald Trump's term. Though economists didn't know it then, April 2012 would be the last time Obama would see inflation above 2%. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower In the United Kingdom, this article was prepared by Carmignac Gestion and/or Carmignac Gestion Luxembourg and is being distributed in the UK by Carmignac Gestion Luxembourg UK Branch (Registered in England and Wales with number FC031103, CSSF agreement of ).Best Debt Consolidation Loans for Bad Credit The portfolios of Carmignac funds may change without previous notice. ![]() The Management Company is not subject to prohibition on trading in these instruments prior to issuing any communication. This is not intended to promote direct investment in those instruments, nor does it constitute investment advice. Reference to certain securities and financial instruments is for illustrative purposes to highlight stocks that are or have been included in the portfolios of funds in the Carmignac range. Past performance is not necessarily indicative of future performance. The information contained in this article may be partial information and may be modified without prior notice. ![]() It does not constitute a subscription offer, nor does it constitute investment advice. This article may not be reproduced, in whole or in part, without prior authorisation from the management company.
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