The FOMC confirmed market fears and hiked rates in September, the first hike in over three years. While another hike looks likely this year, investors should consider the duration of this cycle before making major moves.
As scary as inflation is, much of the current pressure is being driven by high oil prices, which can reverse quickly. High today, they could fall at the drop of a hat. The FOMC has no real control over oil prices, only demand, and that by proxy. Hiking rates may curb demand and ease inflation, but it could also undermine economic activity, risking a contraction or stagnation.
