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.
They also foresee continued volatility in the stock market, but are turning to active management and alternative strategies to mitigate its risk.
Clients with defined benefit plans that are currently enjoying a bump in funded status may want to act soon to lock in those gains while market conditions remain favorable.
Vanguard’s chief economist warns that rising rates may sting in the short term, but book value losses should be offset by higher future returns—rewarding those with perspective and strategic patience.
Sixty-eight percent say they pay close attention to inflation as they prepare for retirement.
“By providing a more diversified set of fixed income options, plan sponsors can help participants be better equipped to weather any challenging market environment, such as the rising rate environment we are in right now,” a Insights article from Cammack Retirement concludes.