Sticky inflation and soft consumer spending are reasons for worry, strategist says

GDP figures came in softer than expected on Thursday, and with PCE data set to be released tomorrow, investors may wonder what this means for the outlook on inflation and potential Federal Reserve rate cuts. Providence Financial & Insurance Services president Anthony Saccaro joins Wealth! to discuss the inflation outlook.
Saccaro notes that while the economy remains healthy, "that's part of the issue: everything is softening but inflation." Inflation continuing to run high will ultimately have the biggest impact on consumers: "The higher inflation stays, the softer the consumer is going to become, and that's probably the biggest worry about the future."
"The Fed is in a pickle right now. The Fed is trying to figure out how they can lower rates. They want to lower rates, they've said that at the beginning of the year, but they have to have the economic data to support lowering rates. And they're not getting that at all," Saccaro tells Yahoo Finance.
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[@mikhailmamontov2155]

Government does not care about majority of people, as long as big investors are happy. Feds will cut rates no matter what, because government is paying huge interest on the government debt now.

[@quinnh1398]

I don't think so. It'll be worse if they cut, and I can only assume it will get wors

[@huynguyentoantin]

Inflation comes down means the rate of price increase is lower but prices are still increasing. So it is stupid to reason that you can take salary raises back

[@antoanetamanko7457]

This! I was shocked to hear this as an argument! 🤦🏻‍♀️

[@Benzknees]

They might not be taken back as such, but high wage rises without accompanying productivity rises usually lead to rising unemployment rates. And that then means all bargaining power is lost, and wage rises stagnate, till real wage levels do come back down.

[@bobbyward2440]

The way this guy talks annoys me

[@Chimichanga1986]

Let’s not forget that government spending is a big chunk of GDP. I think we can all agree a good bit of that is just straight up waste. Also there are more and more lay offs taking place, more people working multiple jobs to survive, and baby boomers have been getting out of the job market it drives for a few years now. So I take these numbers with a grain of salt. The reality is our economy is not strong for the right reasons.

[@arshadulislamchowdhury7265]

What about Fed printing money for foreign governments?.

[@bobbyward2440]

The fed does not allocate money to go anywhere

[@chaoticrealm777]

I suggest googling and learning how the world works so you can move away from the problem of "the world working how you want to believe it works"

[@douginorlando6260]

A major cost to business is interest on borrowed money. The Federal Reserve’s high interest rates increases business cost which gets passed on to customers. The Fed is increasing inflation, not reducing inflation.

[@mellarx1277]

Sigh, another "strategist".

[@mircea_h]

One that almost understands inflation

[@willrose5424]

Yahoo

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[@chrisbranicz1]

lol

[@chrisbranicz1]

Trash