WS #15698
Federal Reserve officials are looking to hold off on a rate hike this month, but the decision hinges on incoming inflation data which is showing signs of stickiness. A Reuters/Ipsos poll indicates 78% of Americans blame current policies for rising prices, adding political pressure. The market implication is a 'higher for longer' rate environment that pressures high-multiple growth stocks and REITs, while offering a tailwind for financials with improved net interest margins.
Fed Policy & Inflation
Federal Reserve officials are looking to hold off on a rate hike this month, but the decision hinges on incoming inflation data which is showing signs of stickiness. A Reuters/Ipsos poll indicates 78% of Americans blame current policies for rising prices, adding political pressure. The market implication is a 'higher for longer' rate environment that pressures high-multiple growth stocks and REITs, while offering a tailwind for financials with improved net interest margins.