22 Apr 2005 Inflation a Problem?
Posted at 16:44h in The Friday BriefWill higher oil prices finally cause inflation in the U.S. economy? Will the Federal Reserve be forced to raise their benchmark rates faster and risk stalling the economy? These are the questions on the minds of investors and traders of stocks and bonds alike. Recent indicators released by the government this week had opposite and dramatic effects on the markets. The Producer Price Index released Tuesday showed that prices held steady for the month of March at the manufacturer’s level. The S&P 500 index was up .6% and the bond markets rallied substantially as well.