With core inflation remaining stubbornly high last month, the possibility of another rate hike at the Fed’s next meeting in May has increased. Still-high inflation, persistent rate hikes, and recent turmoil in the financial sector raise the probability of a recession. Amid this, Albertsons Companies, Inc. (ACI) and CarMax, Inc. (KMX), which released their earnings reports this week, sparked the question of whether these stocks are ideal buys. Let’s look into it.
Over the past year, the Federal Reserve has raised interest rates from almost zero to around 5% to mitigate the escalating price pressures. Last summer, inflation reached its highest level in 40 years due to lingering supply chain disruptions and limitations on global commodity prices stemming from Russia's war on Ukraine.
