The Impact of Rising Inflation on Global Markets and Your Wallet
Hello Project Hope friends, I hope your week is progressing very well. Something that I think we should all be interested in is what is happening in the world's leading economy, such as the United States. In particular, I am always watching, because part of my business and work activities is trading, which I do in essence with the American Dow Jones or US30 index.
Well, just today, Wednesday September 13, at 7.30 am New York time they gave the value of inflation, comparing what there was last month based on what was expected, and the results have not been positive, as this is what the Federal Reserve has been fighting, with the intention of lowering it. That is why the interest rate has been rising steadily.
Today's data was as follows:
It can be seen that the previous figure was 3.2% inflation, and it was expected to come out at 3.6%, that is, it came out higher, this expected rise could be seen to a great extent as the result of the increase in oil prices, and this makes both gasoline and all its derivatives go up in price, making practically everything go up in price, and therefore inflation goes up.
However, it could be seen that the result was 3.7%, which implies that it came out higher than expected, that is, inflation has risen, and this implies some things that can be expected in terms of the Fed's actions and the possible rate hike. The reality is that if inflation continues to rise the FED will continue to raise interest rates, making credit more expensive and this will bring many problems in the economy, and not only the U.S. economy but the global economy.
On Wednesday, September 20, the new interest rate will be published, it is expected to rise at least 0.25%, however, a big surprise would be if they raise 0.5%, that would seriously affect the market and would throw the prices of indexes and stocks down.
These things do not seem to affect those who are not involved in the financial markets, however, the detail is that companies are the ones that produce the products and services that we generally consume, and the risk of prices going up is very great, in addition to the fact that unemployment may increase, which is very bad for any economy. In short, I think we are living in complex times. Knowing this can make us take these realities with more peace of mind.
I hope this post has contributed something to you.
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