Despite rising inflation, due to pent-up demand, supply chain issues, and massive spending from the Biden administration, The Fed on Wednesday repeated the message that our economy is good, and they believe that the inflation will be short-lived.
Economist Peter Morici told KTRH, he agrees, "The U.S. economy is booming, and corporate profits are soaring. They'll be about 60% over last year. Factoring that in, stocks become a bargain."
During the pandemic, a lot of people invested, and participated in the market, which is why many believe it will still continue to thrive over the summer, despite the inflation.
Michael Smith, President of Avidian Wealth Solutions told KTRH, "The Market right now is doing well because we have a ton of accommodations from the Federal Reserve."
What about the rest of the year? "In the summer, expect some volatility" he said, and as for retirement investments? "The key is to remember you're investing, so you're investing for the long haul. Look at the longer term picture, align with that, and you should be fine."
In the meantime, The Fed says it doesn't anticipate raising interest rates until 2023. Right -after- the elections.