Bad News About Inflation For Rate Cut Dreamers
24/7 Wall St. analysts Doug McIntyre and Lee Jackson discuss persistent inflation concerns, with particular focus on sectors like insurance affecting the consumer price index. Both expect continued high inflation rates and the anticipate that interest rates will remain elevated…
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24/7 Wall St. analysts Doug McIntyre and Lee Jackson discuss persistent inflation concerns, with particular focus on sectors like insurance affecting the consumer price index. Both expect continued high inflation rates and the anticipate that interest rates will remain elevated without cuts until the next year.
Transcript:
I do not see inflation coming down. I don’t see any reason to think with crude where it is, a lot of foods where they are, insurance. If you look at the consumer price index, one of the things that’s hammering it up is insurance. I don’t see those things changing. Do you? I don’t either. And again, do we go back to 9.1% inflation like it was in the summer of 22? No, but it’s been flat to higher ever since October. And I don’t think, and as you just mentioned, you know, pricing across the board and insurance has been horrible on home and car insurance. So pricing across the board is going to continue to be stable. the inflation will remain sticky and it’s going to hover in this same 3.8 to 4% range where it’s been. And I don’t think there’ll be any sort of interest rate cuts until next year. It’s very likely. And the scenario many people see is higher interest rates, more inflation and no cuts until next year.
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Austin Smith is a financial publisher with over two decades of experience as an investor, analyst, and advisor. He covers stocks, ETFs, Artificial intelligence and personal finance for 24/7 Wall St. Previously, he spent over a decade at The Motley Fool as a senior editor for Fool.com, portfolio advisor for Millionacres, and launched The Ascent to help reader take control of their personal finances.
His work has been featured on Fool.com, NPR, CNBC, USA Today, Yahoo Finance, MSN, AOL, Marketwatch, and many other publications. He is as an advisor to private companies, and co-hosts The AI Investor Podcast with Eric Bleeker.
When not looking for investment opportunities, he can be found skiing, running, or playing soccer with his children. Learn more about Austin's investment approach here.
