Our inflation problems just got worse
The Russian activity in Ukraine will push up oil prices and this will drive up the inflation impulse throughout the world.
The analysts calling for Fed stimulus to offset this problem are likely going to be disappointed. Will the Fed cut rates from here? No. Will they do more QE? No. They are still doing the last little bit of pandemic QE right now!
There are many, many similarities to the early 1970s.
As a reminder, I've attached a history of interest rates and inflation 1960-1980.
Robert Lloyd, CFA®
Chief Investment Officer
Lloyds Intrepid Wealth Management
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