While consumer prices eased slightly in February, the stubborn inflation and tight job market could compel the Fed to raise interest rates. This and the recent turmoil in the banking sector could keep the stock market under pressure. Therefore, I wanted to discuss the benefit of investing in an ETF that can offer a steady income stream. I am talking about the Vanguard Dividend Appreciation ETF (VIG).
Despite a slower increase in February, inflation remains far above the 2% target rate, which calls for aggressive interest rate hikes by the central bank. However, the recent insolvency issues in the banking sector could compel the Fed to increase the interest rates marginally or keep them unchanged in its meeting next week. Goldman Sachs (GS) believes the Fed would pause its rate hikes for now but resume them for its May meeting.
