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Inflation Still on the Rise

Inflation Still on the Rise

June 14, 2022
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The stock market gave up all of its recent gains, and more, between the end of last week and the start of this week due to a higher-than-expected inflation report which was released last Friday. The stock market hit new lows since the start of this year’s downturn, with the S&P 500 now in a bear market (a decline of 20% or more).

Investors were hoping that last Friday’s inflation report would show that inflation had peaked but instead it showed inflation still increasing. This was negative for the stock market because it means the Federal Reserve will need to be even more aggressive with the economy down to reduce inflation.

The Federal Reserve will have its two-day meeting this week and it’s now estimated they may increase interest rates with a larger .75% rate hike to get inflation under control. The meetings conclusion on Wednesday will most likely be the biggest market mover this week.

Photograph by: Kenny Eliason on Unsplash

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