Markets see-saw as Fed continues their dance with Inflation.
Stoyan Panayotov, CFA
Financial advisor in the San Francisco Bay Area | Wealth Strategist | Founder
After several more days of see-saw action, the markets ended flat for the week. The volatility continues as Markets react to the ongoing dance between the Fed and Inflation data.
Early in the week, we got signs the Fed was feeling positive and may start slowing interest rate increases, but today the November jobs report came in above expectations, sparking worry about wage inflation as businesses compete for people
Here's what experts are saying about the situation:
- On slowing interest rate increases - "It makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down. The time for moderating the pace of rate increases may come as soon as the December meeting." ~ Fed Chairman Jerome Powell
- On the November jobs report - "The supply of workers remains low, the demand for workers remains high. That means wage inflation will remain sticky." and that's a problem for stocks going forward because it's likely to keep the Fed hawkish rather than dovish." ~ Michael Arone, Investment Strategist
- On the risk of Wage Inflation - "Strong job creation and a big increase in wages underscore the Fed's argument that a lot more work needs to be done to get inflation under control," ~ James Knightley, International Economist
This Week's Tip: Retailers are expected to have great promotions this month. You can organize your gift-giving early to take full advantage of savings.