What To Do About Stubborn Inflation (2/21/23)

(2/21/23) Futures are on shaky ground this morning as the Fed's aggressive stance sinks in: Fed Pres. James Bullard and Loretta Mester last week both said the Fed would continue its aggressive rate hikes, with a possible 50-bp jump at the next Fed meeting, undermining the markets' view of a one-and-done rate hike this month. Fed Fund Futures are now suggesting a terminal rate of 5.3%, much higher thank markets had predicted, and negating market expectations for rate cuts this summer. The Fed is not concerned that inflation has become more "sticky' than first imagined. The conundrum is the well-performing economy is providing underpinning pressure for inflation despite the Fed's best efforts. The concept of higher rates for longer will undermine corporate earnings and profit margins. Valuations remain elevated as prices rally, but earnings have been falling. The concept of a "soft landing" is problematic if the Fed continues to hike rates. Hosted by RIA Advisors Chief Investment Strategist, Lance Roberts, CIO Produced by Brent Clanton --------  Get more info & commentary:  https://realinvestmentadvice.com/insights/real-investment-daily/ ------- Watch the video version of this report by subscribing to our new "Before the Bell" YouTube channel:  https://www.youtube.com/watch?v=I4mPIKm7urQ&list=PLwNgo56zE4RAbkqxgdj-8GOvjZTp9_Zlz&index=1  ------- Visit our Site: www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to SimpleVisor: https://www.simplevisor.com/register-new -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #InvestingAdvice #InterestRates #Inflation ##FederalReserve #Markets #Money #Investing