Is Inflation Cooling?
Co-Authored and Reviewed by Gagan Sandhu, MBA - The University of Chicago Booth School of Business, CEO of Xillion
Posted on . 2 min read
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Is inflation cooling?
š 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!" š š š š
Sorry, not so fast.
Fed chair Jerome Powell warned last week: "There has been an expectation that it will go away quickly and painlessly ā and I donāt think thatās 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 ā 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 š š„ š š”
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 ā
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 š šø
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