Fed’s target of 2% inflation could be years away
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Blerina Uruçi of T. Rowe Price predicts that the US may not reach the Federal Reserve's target of 2% inflation until late 2025 or early 2026 due to the lack of destruction in domestic demand. She suggests that investors should continue to position portfolios with inflation hedges in mind. Uruçi recommends asset classes such as mortgages and short-dated credit, as well as exploring opportunities in credit and inflation-linked bonds. She notes that the US is experiencing demand-pull inflation rather than cost-push inflation and that wage inflation is coming down despite the unemployment rate not increasing. Uruçi also acknowledges the challenge faced by central banks in recognizing and mitigating inflationary trends. The article was written by Blerina Uruçi and sponsored by Canada Life.

#Inflation #Investment #Portfolio #UsEconomy

https://www.investmentexecutive.com/soundbites/equities/feds-target-of-2-inflation-could-be-years-away/