Fed's Inflation Flashback

Matthew Allgood |

 

 

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Inflation has come off its peak, but recent readings of the Consumer Price Index remain stubbornly high. The Federal Reserve’s current dilemma: keep inflation under control while supporting economic growth.

 

As seen in the grey line, historical patterns warn that cutting interest rates too soon can lead to a resurgence in inflation. The Fed must carefully navigate these challenges to avoid repeating past mistakes. Rest assured, we're here with you at every step and will continue to monitor your portfolio risk to stay on track with your financial goals.

 

 

Fed's Inflation Flashback

 

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Source: Bloomberg, Redwood. Data as of 5/22/2024. Date Range from 1966-1982 and 2013-2024.

 

Regards,

Allgood Financial

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