• Dan Boardman-Weston, CIO at BRI Wealth Management


• 10.12.2021 02:00 pm
#WealthManagement #infilation

Commenting on highest US inflation in 40 years, Dan Boardman-Weston, CIO at BRI Wealth Management, said: “US inflation came in at 6.8%, up from 6.2% in October and in line with forecasts. The reading which is the highest level in nearly 40 years comes as little surprise to the market due to the ongoing supply chain issues, robust consumer demand and base effects from last year kicking in. This is likely to add further pressure to the Fed to quicken the withdrawal of quantitative easing and raise interest rates sooner than expected. There could be hesitancy from the Fed due to the potential impact that Omicron may have on the economy in the coming months but it’s unlikely this will significantly alter the growth trajectory of the economy. The US economy is in rude health and doesn’t require crisis levels of quantitative easing or interest rates and so it remains our view that policy will become tighter. It is important to note that whilst inflation is high and getting higher, the supply chain issues, the high levels of demand and base effects are likely to prove transitory and we continue to believe inflation will move lower over the coming year.”