What's Next: Inflation vs Recession

Jul 19, 2022

By The Small Exchange

Overview

The Fed primarily controls interest rates, which they move higher in times of inflation and lower in times of recession. But what do they do when there's fear of both at the same time? Jermal and Frank show you how the Fed attempts to balance interest rates to avoid high inflation or potential recession, and they talk about how this has set up for an interesting trade.

The futures dudes conclude that buying interest rate markets could profit from higher inflation readings while selling them could profit from a recession hitting for the first time in more than a decade. Find out what side you're on, and learn how to trade your opinion.

Contents

0:05 What's Next: Inflation vs Recession

0:50 Inflation is the Highest it's Been in 40 Years

1:15 The Fed is Raising Rates to Counteract Increasing Inflation

3:50 Higher Rates are Pushing Stocks Lower

4:15 Will Rates Rise to Fight Inflation or Lower to Fight the Recession?

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