With the tariffs and the FED situation, why aren't more folks / mainstream media outlets not discussing the risk of another bout of significant inflation? It's mentioned here and there, but from a financial perspective, this seems like the number one risk in the medium term. Thoughts?
Inflation – why aren't more folks talking about it?
byu/AdministrativeGift80 ininvesting
Posted by AdministrativeGift80
11 Comments
Because tariffs don’t cause inflation. The money printer does.
I think most people who are squarely in the middle of their careers are more worried about a weak job market versus inflation.
I can stomach 2-4% inflation if I can job hop, get good raises and bonuses, etc.
What hurts me is looking at dismal job reports where there are so few new openings that everyone is forced to sit and hold their position at their current company.
The hope is that these upcoming cuts deliver a stronger job market and new job opportunities. I personally don’t mind eating inflation at 4% if that’s the case.
Obviously, if there is no growth, and we hit stagflation, I get a pie to the face and pinch on the wallet. But it’s a risk I’m willing to take.
And of course, retirees, people on fixed income, etc, inflation is more important to manage versus job market strength. So there are various opinions out there.
The jobs situation is deflationary.
We are just losers posting bad investment advice in reddit, what do you want us to do about inflation?
Govt spending is inflationary and current guy has a poor track record on it.
That is almost all they talk about on financial networks.
There is no realistic way we ever deal with the national debt without significant inflation. We ~~could~~ will continue to ignore it, but interest costs alone are going to force a reckoning one way or the other, already spend more on interest than defense.
I think the weak jobs market is overshadowing those risks which is why FED is cutting.
Also JP thinks tariffs are a one time shock that is working its way through the supply chain. lol, it reminds me of when he kept saying inflation would be transitory, I’m skeptical about his analysis but at the same time I don’t really know myself.
I’ll be keeping an eye on the situation as it develops.
Probably because this president is incompetent and no one knows what he’s going to do. It’s hard to make forecasts and plan when he’s constantly changing by the day. He’s supposedly all about bringing manufacturing jobs back to America and yet his tariffs are the sole reason manufacturing has already laid off more than 78,000 people so far this year. He makes no sense. Seems like he’s purposely crashing the economy to make the fed lower rates so the government can renew their debt at a lower rate so he can keep taxes low and his tax breaks high for his billionaire friends.
I expect to be downvoted by the politically biased, but I’ll say it anyway. Tariffs seem to have zero effect on stocks. Stock goes down, they say because tariffs. Stock goes up, they say despite tariffs.
All it’s proving to me is that large cap especially are capable of simply eating these costs in the short term while still maintaining momentum in the long term. And in the short term, inflation actually benefits shareholders.
As to why people aren’t talking about it. Idk I’ve asked the same question for a decade. But I’m fortunate enough to have a labor job that accounts for inflation and cost of living in our yearly raises. A lot of people don’t have that but those people generally aren’t investing for income, most people don’t even look at their 401ks for years.
Too broke to talk about it I’m guessing. Busy thinking. Any day now. Eggs affordable.