Is Inflation Cooling?

portfolio optimizer
emergency savings guide
Co-Authored and Reviewed by Gagan Sandhu, MBA - The University of Chicago Booth School of Business, CEO of Xillion
Posted on . 2 min read

Is inflation cooling?

📉 Sure, but that's not the full story.

The Bureau of Labor Statistics released the latest inflation data today. They found that inflation slowed down for a seventh straight month in January. So prices are still up 6.4% year-over-year, but that's a slower rate than the 9% rate we experienced in the middle of 2022.

You might think: "Great! Inflation is down. Let's lower interest rates and get this STONKS party started again!" 🎉 🚀 🚀 🚀

Sorry, not so fast.

Fed chair Jerome Powell warned last week: "There has been an expectation that it will go away quickly and painlessly — and I don’t think that’s at all guaranteed."

And indeed, if you look closer at the data, the prices for a lot of goods and services remain stubbornly high. Think about it — do you feel the inflation burden going down? In the U.S., fixed costs remain particularly high for things like mortgage/rent, health insurance, and student loans 🎒 🏥 💊 🏡

The lesson? When the problem is difficult, the solution is likely difficult too. The Fed isn't going to fix the American economy in just a few months ⚒

Inflation Cooling

Now is the perfect time to optimize your finances to weather the storm. Xillion can help will all facets of planning, from portfolio optimization to emergency savings. Get started with a free account today 😎 💸

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