Inflation continues to wreak havoc across the economy despite the Fed’s tightening monetary policy. Economists expect the June consumer price index to be hotter than May’s 8.6% year-over-year pace. Consequently, the Fed’s hawkish stance remains unbattered despite the increasing odds of a recession.
Fed Governor Christopher Waller said, “I’m definitely in support of doing another 75 basis point hike in July, probably 50 in September, and then after that, we can debate whether to go back down to 25s.” Financial stocks tend to be significant beneficiaries of the rising rates. So, investing in quality financial stocks could help beat inflation.
