News | Forex Optimum

News

News

U.S. inflation could hit 3% or 4% by the middle of 2022 - strategist

CNBC reports that there is a growing body of strategists that believe investors are underestimating the outlook for consumer prices.

David Roche, president of investment firm Independent Strategy, told that he believed the U.S. inflation rate, which stood at 2.6% in March from a year ago, could rise much further.

“My own view is that we will see inflation of probably 3 or 4% by the middle of next year and that is completely inconsistent with, say, U.S. 10-year bond yields being at 1.6%. That yield could easily double and when it does, then you come to the crunch point that markets are going to experience,” he told.

“The reason prices will rise, and really there are a couple of things, is that you’re going to end up with, on the other side of Covid (the pandemic), huge demand as consumers spend the excess savings which they have accumulated,” he said.

“And you’re going to end up with big government forever ... and that of course is less efficient and less efficiency means higher inflation.”

Rising inflation is one of the biggest concerns facing the market right now, as high prices could affect asset values and corporate margins and limit consumer buying power.

You may also be interested:

22:29 14.05.2021
Key events for next week: Japan GDP, Britain and Australia unemployment rate, Britain and Canada consumer price index, Fed meeting minutes, eurozone, Britain and the United States PMI indices
On Monday, at 02:00 GMT, China will announce changes in fixed asset investment, industrial production and retail trade for April. At 06:00 GMT, Japan will announce a change in machine tool orders for April. At 06:30 GMT, Switzerland will publish the producer and import price index for April. At 10:00 GMT, in Germany, the Bundesbank's monthly report will be released. The Eurogroup will also meet on Monday. At 12:15 GMT, Canada will announce a change in housing starts for April, and at 12:30 GMT -
17:57 14.05.2021
Canada’s manufacturing sales increase in line with expectations in March
Statistics Canada released its Monthly Survey of Manufacturing, which showed that the Canadian manufacturing sales climbed 3.5 percent m-o-m in March to CAD57.84 billion (highest level since June 2019), following a revised 1.1 percent m-o-m drop in February (originally a 1.6 percent m-o-m decline). This marked the largest monthly increase in manufacturing sales since July 2020.Economists had anticipated a gain of 3.5 percent m-o-m for March. According to the survey, sales grew in 17 of 21
17:37 14.05.2021
U.S. business inventories increase 0.3 percent in March
The Commerce Department announced on Friday that business inventories rose 0.3 percent m-o-m in March, following a revised 0.6 percent m-o-m gain in February (originally a 0.5 percent m-o-m increase).That was in line with economists’ forecast for a 0.3 percent m-o-m advance. According to the report, stocks at wholesalers jumped 1.3 percent m-o-m, while inventories at manufacturers rose by 0.7 percent m-o-m. At the same time, stocks at retailers declined 1.4 percent m-o-m.
Deposit
options
Trading
platform
download
Bonuses VIP