Speaking from Jackson Hole, Fed Chairman Powell said, \u201cInflation is too high,\u201d adding that they are prepared to raise interest rates further. The inflation rate in June\/July has been around 3%.<\/p>\n\n\n\n
The Feds effort to dampen inflation is working as the latest data shows a continued shrinkage of money supply.\u00a0 The conundrum is that nominal GDP is up 6.3% from a year ago so somehow, the broader economy is growing despite less money circulating.<\/p>\n\n\n\n
A side effect of all that additional money supply was a rise in stock prices. Excess money tends to end up with consumer spending or investing. However, the money supply is shrinking so this trend may reverse for a time unless we see good financials from companies this fall.<\/p>\n\n\n\n
Edi Alvarez, CFP\u00ae
BS, BEd, MS<\/p>\n\n\n\n
www.aikapa.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Speaking from Jackson Hole, Fed Chairman Powell said, \u201cInflation is too high,\u201d adding that they are prepared to raise interest rates further. The inflation rate in June\/July has been around 3%. The Feds effort to dampen inflation is working as … Continue reading