Sage Investment Club

Strategist who loves challenging consensus sticks by call for 8% fed-funds rate

Dominique Dwor-Frecaut, a former associate with the New York Fed and outlier from the rest of the financial-market pack, is standing by a bold call she made a year ago: She says the Federal Reserve needs to hike its benchmark interest rate to 8%, versus the current level of 4.5%-4.75%, to stabilize inflation and could […]

Why January’s CPI report could deal a massive blow to the stock market

The stock market’s start-of-year rally is poised to fizzle if a highly-anticipated U.S. inflation report on Tuesday dashes hopes for a quicker retreat in the cost of living in America, warned market analysts.  The January CPI reading from the Bureau of Labor Statistics, which tracks changes in the prices paid by consumers for goods and […]

Fed Officials Signal Higher Interest Rates Will Be Needed to Contain Inflation

A senior Federal Reserve official said the economy will need higher borrowing costs for a few years to bring down inflation and prevent price pressures from strengthening. “We still have some work to do to get interest rates in the right place,” said New York Fed President John Williams at The Wall Street Journal’s CFO […]

Households Burn Through What’s Left of Their Pandemic Savings

The cushion of savings many built up during the pandemic is thinning out. In some households, it is already gone.Americans have spent down about 35% of the extra savings they accumulated during the pandemic as of mid-January, according to an estimate from Goldman Sachs. By the end of the year, the company forecasts that they […]

Eurozone inflation fell more than expected in January, to the lowest rate since May 2022

Eurozone inflation eased more than expected in January, reaching an eight-month low, but price pressures persisted beyond energy as the European Central Bank gets ready for further interest-rate increases. Consumer prices rose 8.5% in January compared with the same month a year earlier, down from a 9.2% increase in December, according to preliminary data from […]

U.S. consumer sentiment strengthens in final January reading

The numbers: U.S. consumer sentiment improved in late January to 64.9, according to the University of Michigan’s gauge of consumer attitudes. This added 5.2 index points from 59.7 in December and was up from the initial January reading of 64.6. Economists surveyed by The Wall Street Journal had forecast an unchanged reading of 64.6. Key […]