{"id":8020,"date":"2019-05-13T16:36:23","date_gmt":"2019-05-13T16:36:23","guid":{"rendered":"https:\/\/zackspcg.com\/blog\/?p=8020"},"modified":"2022-02-26T13:07:18","modified_gmt":"2022-02-26T13:07:18","slug":"is-inflation-a-thing-of-the-past","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/is-inflation-a-thing-of-the-past\/","title":{"rendered":"Is inflation a thing of the past?"},"content":{"rendered":"\n

\u2018Inflation\u2019 used to be a word that, when\ndiscussed in economic circles, often dealt in worrisome implications \u2013 fear of\ntoo much inflation or concern over not enough inflation (or at worst,\ndeflation). Rarely have we seen inflation running at subdued, acceptable levels\nfor long stretches of time, as we have arguably seen in the last decade or so: <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Source: Federal Reserve Bank of St. Louis1<\/sup><\/em><\/strong><\/p>\n\n\n\n

Indeed, from 1965 through the late 1980s, inflation posed a\nstubborn risk to U.S. economic health and growth. In the post-war boom with\nbaby-boomers and women entering the workforce in droves, the Federal Reserve\u2019s\nessential task was keeping inflation in check. So critical was the need to\ncontrol inflation that in 1977, Congress mandated the Fed to \u201cpromote\neffectively the goals of maximum employment, stable prices, and moderate\nlong-term interest rates.\u201d <\/p>\n\n\n\n

The early 1990s saw the Fed\u2019s inflation target land in the\n1.5% to 2% range, and following the Great Recession, the Fed moved to make the\nofficial target 2%. As you can see from the chart above, much of the current\neconomic expansion has featured inflation just under the Fed\u2019s official target\n\u2013 even with the U.S. economy at full employment and interest rates near\nhistoric lows. The question is, why and how has inflation remained so low?2<\/sup><\/p>\n\n\n\n

__________________________________________________________________________<\/p>\n\n\n\n

Focus on Fundamentals Instead of Inflation!<\/a><\/strong><\/p>\n\n\n\n

Inflation remaining at such subdued levels for so long can\nmake many investors fear that it cannot last. But my recommendation would be\nnot to let your emotions and fears get the best of you. Instead, stay focused\non the fundamentals and other critical economic indicators. <\/p>\n\n\n\n

To help you do just that, I am offering you our just-released\nStock Market Outlook Report right now. This 22-page report is packed with some\nof our key forecasts and facts to consider such as:<\/p>\n\n\n\n