US fiscal policy is undermining the Fed’s efforts to fight inflation

US Federal Reserve Board Chairman Jerome Powell walks away after giving a press conference after the Federal Reserve raised its target interest rate by three-quarters of a percentage point in Washington, Sept. 21, 2022.

Kevin Lamarque | Reuters

Inflation remains the main issue on investors’ minds, with many trying to determine when the relentless rise in prices will stop and whether the Federal Reserve’s aggressive interest rate hikes to try and stop the spiral will engineer a so-called soft landing. for the economy – or, instead, send us into a deep recession. In fact, your views on the inflation trajectory will determine your views on the Fed’s future actions and, therefore, how you decide to put your money to work.

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