Institution: Federal Reserve comments suggest inflation risks are not yet over

Deep Tide TechFlow news, June 18 — Ritesh Ganeriwal, Head of Investment and Advisory at Syfe, said that the more hawkish signals released in the Federal Reserve’s statement suggest that even if the Iran conflict ends and energy supplies return to normal, inflation risks have not disappeared. Ganeriwal noted that while further rate hikes are still possible this year, such a move is far from certain and the bar is high. He said that if a peace agreement between the U.S. and Iran is maintained and oil prices remain relatively low, the Federal Reserve may find fewer reasons to raise interest rates.

Syfe also said the U.S. dollar could weaken. It cited remarks by the Federal Reserve’s incoming chair, Worsh, saying that he has little confidence in the committee’s own economic forecasts. The institution believes that the yield bonds offer today is “for the first time in years truly able to compete with stocks.” “For each additional month of waiting, you miss out on gains you could have captured.” (Jin10)