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Inflation, Interest Rates, & Indiana Jones

Inflation, Interest Rates, & Indiana Jones

| July 25, 2022
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Stop me if you heard this already—roughly half the population wasn’t alive last time inflation was at this level.

It’s true. According to IMDb.com, Raiders of the Lost Ark was the #1 movie at the box office the last time prices were rising at a rate of 9% a year.

In economic circles, the most widely-followed inflation barometer, the Consumer Price Index, is considered a lag indicator, meaning that by the time it’s reported, prices likely have changed. The question is, are prices continuing to trend higher or are they moving lower?

The Fed will attempt to answer that question at its July meeting, when it makes a decision about short-term interest rates. There’s speculation rates could jump as much as 1% to curb inflation. But the Fed has to watch for a backfire, as a 1% move may send a desperate signal to the financial markets.

High inflation is a pain in the wallet, but hasn't lasted forever. In the meantime, try not to watch the markets too closely, and go to the movies this summer. Who knows? We might be watching history in the making.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. Any company names noted herein are for educational purposes only.

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