WS #14814
Federal Reserve official Hammack has warned that 'memory inflation' could become a persistent risk if expectations shift, supporting the case for restrictive policy. This sentiment is reflected in rising mortgage rates, which have climbed to 7.03%, and a strengthening dollar. The macro backdrop remains challenging for rate-sensitive sectors like real estate and consumer discretionary, though Costco’s earnings beat suggests resilience in essential retail.
Fed Inflation Risks
Federal Reserve official Hammack has warned that 'memory inflation' could become a persistent risk if expectations shift, supporting the case for restrictive policy. This sentiment is reflected in rising mortgage rates, which have climbed to 7.03%, and a strengthening dollar. The macro backdrop remains challenging for rate-sensitive sectors like real estate and consumer discretionary, though Costco’s earnings beat suggests resilience in essential retail.