How High Will The Fed Go?
The big question is how high will the Fed raise interest rates? If we compare key rates
like consumer price inflation, Federal Funds rate and the US 10-year Treasury Bond
yield, it is obvious that rates could go much higher.
If the Fed actually followed the data, as they say they do, Federal Funds rates would
already be well above zero based on the much higher rate of consumer inflation. That is
not what is happening. There are strong political pressures at work here: Washington
wants to avoid both inflation and recession. Our view is that these are mutually exclusive
options given the supply chain constraints, residual Covid restrictions, and change in
consumer behavior.
Chief Investment Officer
Lloyds Intrepid Wealth Management
Lloyds Intrepid LLC is doing business as Lloyds Intrepid Wealth Management. Lloyds Intrepid LLC offers investment advisory services in the State of Texas where registered and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. Lloyds Intrepid LLC and its advisers do not provide legal, tax or accounting advice. Lloyds Intrepid LLC formulates retirement plans, investment strategies, portfolio construction and investment due diligence for clients with signed investment advisory agreements with us. The information contained herein has been obtained from sources believed to be reliable, but the accuracy of the information cannot be guaranteed. All opinions and outlooks are subject to change.
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