December 20, 2024—An interesting perspective emerged recently regarding inflation trajectories and Federal Reserve policy that deserves careful attention. According to recent analysis, both Federal Reserve and market-implied measures of inflation are tracking above the Fed’s 2% target, raising questions about potential inflation scenarios in the 2025-2026 timeframe.

Particularly noteworthy is Apollo’s assessment suggesting an increasing probability of Federal Reserve rate hikes in 2025 – a possibility that contrasts with many current market expectations. The comparison to 1970s-style inflation dynamics adds a historical lens worth examining, given that period’s significant impact on monetary policy and market behavior.

While it’s essential to consider multiple viewpoints when evaluating economic forecasts, this analysis from Apollo – a respected voice in market analysis – offers valuable insights for investors and market participants thinking about medium-term economic scenarios and portfolio positioning.

Staying current on these potential trajectory shifts will help us make more informed decisions as we continue monitoring inflation trends and Fed policy developments.

—
*This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.
The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the DCA employees providing such comments, and should not be regarded the views of DCA Asset Management or its respective affiliates or as a description of advisory services provided by DCA or performance returns of any DCA clients.
References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.