Market Memo
September 2022 – By Kyle Rohrwasser
“I continue to believe that the American people have a love-hate relationship with inflation. They hate inflation but love everything that causes it.” – William E. Simon
The most recent example of the quote above was the liquidity provided by the Federal Reserve during the COVID pandemic through stimulus and PPP loans. There has also been a slow building of a swelling governmental budget and accommodative banking practices with the use of quantitative easing (increasing the money supply). This caused increased stock prices, home prices, more economic activity, in turn more jobs, etc.… all things Americans love! Now we face the reverse as the Fed will be restrictive for the foreseeable future.
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