Retirement experts weigh in on how advisers can help plan sponsors and participants understand news of cooling inflation, but continued rate hikes into 2023.
This year’s report warns that “key risk concerns for retirement security are coming to a head in today’s rapidly changing economic environment.”
Managers say the markets will continue to grapple with the trade-offs between inflation and growth for the foreseeable future.
With markets off to a choppy start in 2022 and rate hikes on the horizon, inflation is top of mind for many investors, as demonstrated by a D.A. Davidson survey.
The economy is expanding fast, and the U.S. Federal Reserve is growing more worried about inflation than employment; that much is clear in early 2022, but what comes next for the markets and the economy is not.
The complaint challenges the use of both allegedly outdated mortality tables and artificially high interest rate assumptions in the conversion of annuity types under multiple pension plans.
Based on worries about inflation and Federal Reserve policy decisions, market watchers say it would be natural to see a market correction heading into the end of the year, though that fate is far from certain.
As some investment analysts argue inflation has peaked, and that it should soon return to an average annual rate in line with recent history, others are focused on the effects of growing wage pressure and the competition for labor.
Assessing the relationship between interest rates and debatably inflated stock prices is a useful exercise, sources say, especially at a time when stocks are about as ‘expensive’ as they have ever been.
As a highly contentious presidential election plays out in the U.S., the Federal Reserve is working to project a message of stability and consistency to support the markets.
A recent speech given by Jerome Powell included some important reflections on history and a few basic lessons about the critical—and often misunderstood—role of inflation in the U.S. economy.
The economy is always evolving, says Federal Reserve Chair Jerome Powell, and so the nation’s monetary and fiscal strategies for achieving its goals must evolve as well.
We were already in a new normal of very low interest rates before the coronavirus pandemic struck. It now seems even less likely that the old rate regime will re-establish itself any time soon.
This should be a focus when looking at target-date funds (TDFs) often used as the default investment in employer-sponsored defined contribution (DC) plans.
Among the remarkable characteristics of today’s global fixed-income marketplace is the $15 trillion invested in negatively yielding bonds.