
With the Fed about to raise interest rates, where do we go from here? Last week saw significant volatility in the equity markets and the Fed has told us this week to expect up to a 0.5% bump in interest rates. Are we seeing a correction? GDP contracted last quarter by 1.4%. The Fed’s quantitative easing is coming to a slow end, and we now have increased interest rates baked into the cake. Could any or all of this drive us into a recession? Higher interest rates, inflation, recession. This begins to sound like the stagflation of the 1970s. If so, it’s going to be a paired down version. That was pretty awful. What we have today is quite different. We have supply and labor shortages. This implies a new higher base rate for inflation in the decade to come. But when I say a higher base rate, I…
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