Uh-Oh! The Latest September Inflation Forecast Spells Trouble for Wall Street, and It's Not Just Energy Prices to Blame.
Trumpflation is evolving, which may require the Fed to get more aggressive in its fight against persistently elevated inflation.
Overview
On Sept. 16, for only the fourth time this century, the Federal Reserve kicked off a rate-hiking cycle. Fed Chair Kevin Warsh and his colleagues had little choice but to tackle persistently elevated inflation -- 66 months above the Fed's long-term target of 2% (and counting) -- head-on. The Federal Open Market Committee (FOMC) raised the federal funds target rate by 25 basis points to 3.75%-4.00%.
Unfortunately, inflationary pressures are far from over, and that's potentially terrible news for Wall Street and its major stock indexes, the Dow Jones Industrial Average (DJINDICES:^DJI), S&P 500 (SNPINDEX:^GSPC), and Nasdaq Composite (NASDAQINDEX:^IXIC).
Fed Chair Kevin Warsh and his colleagues may be just getting started in their fight against inflation. Image source: Official Federal Reserve Photo.
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Originally published at www.fool.com.