Inflation’s impact on the stock market
Stocks can generally act as a buffer against the long-term impacts of inflation.
With inflation rising to its fastest pace in decades, the Federal Reserve raised interest rates twice in recent months. Heading into their July meeting, another 75 basis point hike is expected after a similar increase in June. But raising rates could come at a cost. The fear is that raising rates too fast could force the economy into a recession. No doubt, economic uncertainty remains high amid surging inflation, but the hope is that the worst is behind us.
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