Economist Larry Summers was right before on inflation—and has another contrarian call now

In attempts to get inflation under control, the latest interest rate increase by the U.S. central bank is 0.75%—for the third consecutive time. But some experts, like Harvard economics professor Larry Summers, warn the Fed’s actions are too little and possibly too late. My Fortune colleague Shawn Tully’s new feature article recalls his day with … Read more

This inflation-protected investment looks good now, but proceed with caution

Yields on Treasury inflation-protected securities are looking attractive, but investors should slow down before bulking up on these assets. These so-called TIPS are government bonds that offer protection against inflation. Their principal rises and falls alongside the movement in the consumer price index. This makes them an attractive instrument for older investors who might be … Read more

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As Wall Street returns next week, trading may focus on rising rates

As investors return from the long Labor Day weekend, they are likely to find the focus will fall squarely on central bankers in the week ahead. That could mean more volatility for both stocks and bonds. There is a dearth of earnings news and economic reports. Instead, investors are likely to more closely follow the … Read more

The summer market comeback was a textbook bear market bounce, history shows

The recent stock rally has all the signs of a bear market bounce, according to an analysis from Citi Research. Stocks hit a recent low in mid-June when the S & P 500 fell into a bear market, meaning it was down more than 20% from its all-time high. Since, the index has rallied a … Read more

Testing June’s stock market low isn’t a foregone conclusion

Federal Reserve Chair Jerome Powell speaking at Jackson Hole on Friday sought to put a scare in markets, which had been trying to teleport to a moment some months from now when interest rates would peak without serious damage done to stocks or the economy. In placing investors and the public on notice that the … Read more

Powell warns of ‘some pain’ ahead as Fed fights to lower inflation

Federal Reserve Chairman Jerome Powell delivered a stern commitment Friday to halting inflation, warning that he expects the central bank to continue raising interest rates in a way that will cause “some pain” to the U.S. economy. In his much-anticipated annual policy speech at Jackson Hole, Wyoming, Powell affirmed that the Fed will “use our … Read more

Wharton’s Jeremy Siegel on Fed rate hike ahead of Jackson Hole

Wharton business school professor Jeremy Siegel said Friday that the U.S. Federal Reserve does not need to hike more than 100 basis points because an economic slowdown is in sight. “I think we only need 100 basis points more,” Siegel said on CNBC’s “Squawk Box Asia.” “The market thinks it’s going to be a little … Read more

Fed expected to stick with hawkish interest rate hikes, strategists say

The Federal Reserve is unlikely to pivot from its hawkish interest rate hikes despite positive signs this week that inflation in the U.S. could be easing, according to market strategists. On Thursday, the producer price index surprisingly fell 0.5% in July from the prior month, compared with an estimate of a 0.2% gain, according to … Read more