US Fed rate hikes expected to eventually help ease inflation, say analysts

US Fed rate hikes expected to eventually help ease inflation, say analysts

Already, some prices in the US, like those of houses and gasoline, are starting to come down, he said. The same trend can be seen in raw industrial materials like copper and aluminium.

However, food prices remain high due to the crunch caused by Russia’s invasion of Ukraine, Dr Weinberg noted.

“I think that we will see, eventually, the Fed will do its job – it will get prices to slow and the way that they do it, their instrument, is by causing the economy to slower, to contract, and I think that’s the only possible outlook that we can have from where we are right now,” he said.

EFFECTS MAY TAKE MONTHS TO BE FELT

Market strategist with trading firm IG Asia, Yeap Jun Rong, told CNA938’s Money Mind that the effects of the latest tightening may take some months to filter through.

“For now, we are still seeing consistent outperformance in the inflation readings. So, it still suggests that the upside risk to the higher prices remain,” he said.

Leave a Reply

Your email address will not be published. Required fields are marked *