Although the Federal Reserve stopped rate increases at its most recent meeting, a market expert cautioned that the U.S. economy still faces a protracted battle against inflation.
Fed Rate Increase Due to Inflation
On “Mornings with Maria” on Friday, ProChain Capital President David Tawil said, “I don’t think that the Fed is going to go ahead and get to its inflation targets very soon. I think it is going to take a long period.” I don’t think that’s incorrect in terms of the markets, he said, “The markets have been able to take this in stride.” “It is going to destroy some industries sensitive to the fed rate increase, like real estate, and I think the fallout will last for years, maybe even a decade, starting with commercial and eventually moving to house”, from the news released by Fox Business.
Almost all Fed members indicated during their policy-setting meeting in June that the Fed rate increase this year is probably due to signs of persistent core inflation in the economy. Tawil’s remarks come just days afterward. He thinks tech will continue to remain strong. Housing and other interest rate-sensitive industries are going to go ahead and lag. Tawil additionally pointed out a change in the American labor market to observe as workers reduce job-hopping or quitting.
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