Mac1958
Diamond Member
The Core PCE Report is out this morning, and we'll see what inflation is up to. Two or three more reports and we'll have a solid idea.
Looking for two things, in general:
1. With American business paying increased tariffs on imported goods, and those goods now working their way through the domino effect of supply chains, how much will that increase costs before consumers pay for goods?
2. How much will American business be able to absorb before passing costs to consumers, and what will those increases look like?
We've already had reports showing some unwelcome increases, but you never know. There are things American businesses can do to avoid and mitigate price increases, and no doubt they're doing what they can. It can include finding new suppliers, choosing not to buy/sell certain products, finding ways to increase internal efficiencies, backing off on things like new capital expenditures and dividends, and/or accepting lower margins.
This will go a long way in determining whether the Fed can start decreasing rates in the near term.
We'll see!
Looking for two things, in general:
1. With American business paying increased tariffs on imported goods, and those goods now working their way through the domino effect of supply chains, how much will that increase costs before consumers pay for goods?
2. How much will American business be able to absorb before passing costs to consumers, and what will those increases look like?
We've already had reports showing some unwelcome increases, but you never know. There are things American businesses can do to avoid and mitigate price increases, and no doubt they're doing what they can. It can include finding new suppliers, choosing not to buy/sell certain products, finding ways to increase internal efficiencies, backing off on things like new capital expenditures and dividends, and/or accepting lower margins.
This will go a long way in determining whether the Fed can start decreasing rates in the near term.
We'll see!
