Inflation threat
Article Abstract:
US inflation could increase to more than 4% in the two years from April 1998, according to Lombard Street Research's Tim Congdon. Strong US domestic demand is pushing up wage inflation, and wage rises are above 4% compared with less than 2% for 1992 to 1993. The level of unemployment below with inflation occurs is almost 6%, and unemployment has dropped to 4.7%. Investors are moving out of cash and into real estate, and low bond yields are also tending to push up stock and real estate prices. The level of inflation will be affected by commodity prices and the value of the US dollar.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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US: inflation fears
Article Abstract:
US economic growth could reach 4% for 2nd qtr 1996 and some 3% after this, with fears that inflationary pressures may arise. The Federal Reserve was initially concerned about recession at the beginning of 1996, but has come to fear inflation, according to Lehman Brothers' Allen Sinai. Interest rates may be raised more than once and this would affect bond yields as well as equities. A correction appears likely in the US equity market due to developments in short term rates and yields for long bonds.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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US: inflation qualms
Article Abstract:
Inflation could rise following an increase in gross domestic product (GDP) in 3rd qtr 1995, in addition to wage inflation and commodity price rises, and faster growth of the money supply. Optimists argue that government spending and a rise in inventories were behind GDP growth, expected to fall back in 4th qtr 1995. They also see broad money growth as not especially significant as an indicator of forthcoming inflation. Seasonal influences lie behind wage rise, argue the optimists.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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