White House Now Forecasts CPI Inflation At 3.3% For 2023 Vs 3.0% In March; 2024 CPI Inflation At 2.5% Vs 2.3% In March
Portfolio Pulse from Happy Mohamed
The White House has revised its forecast for CPI inflation, predicting it to be 3.3% for 2023, up from the 3.0% forecast in March. The 2024 CPI inflation is also expected to be higher at 2.5%, compared to the 2.3% forecast in March.
July 28, 2023 | 6:05 pm
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The revised inflation forecast by the White House could impact the SPY ETF. Higher inflation may lead to increased interest rates, which could negatively affect the stock market.
The SPY ETF tracks the S&P 500, which is a broad representation of the US stock market. Higher inflation often leads to increased interest rates as a measure to control inflation. Higher interest rates can make borrowing more expensive, which can slow economic growth and negatively impact the stock market. Therefore, the revised inflation forecast could potentially have a negative impact on the SPY ETF.
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