Inflation 4.2% - What does it mean? · Invest & Retire Community

Eric Seto

26d (edited) • General discussion

Inflation 4.2% - What does it mean?

Inflation crosses above 4% for the first time in recent months

Market drops

This is because the market is worried that the new Fed Chair Kevin Warsh would not decrease the interest rate.

Instead, there may be a possibility that we might even encounter a rate hike.

This would reduce the money supply.

Companies like tech and semiconductors valuation will go down.

This is why you see a larger correction today with these companies

The real question becomes

Will Kevin Warsh make decisions based on inflation data? Or he is just going to ignore it and lower the interest rate anyways?

Cheers,

Eric

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Eric Seto

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Inflation 4.2% - What does it mean?