President Donald Trump Now Claims to "Love the Inflation" -- but Wall Street Doesn't, and That's a Big Problem
Written by Sean Williams for The Motley Fool -> The effects of the Iran war lifted trailing 12-month inflation to a three-year high of 4.2% in May. Although Trump anticipates a rapid decline in inflation once the Iran war ends, prices may prove far stickier than the president c
The effects of the Iran war lifted trailing 12-month inflation to a three-year high of 4.2% in May.
Although Trump anticipates a rapid decline in inflation once the Iran war ends, prices may prove far stickier than the president claims.
The prospect of Federal Reserve rate hikes is soaring, which could put a serious dent in a historically pricey stock market.
Earlier this month, the time-honored Dow Jones Industrial Average (DJINDICES: ^DJI) , broad-based S&P 500 (SNPINDEX: ^GSPC) , and technology-fueled Nasdaq Composite (NASDAQINDEX: ^IXIC) all hit record-closing highs. Excitement for the artificial intelligence data center build-out has increased corporate growth forecasts and expanded valuation multiples to levels last seen in the late 1990s.
But Wall Street's historic rally may not be as rock-solid as it appears. The May inflation report, published by the Bureau of Labor Statistics on June 10, revealed significant headwinds for the stock market.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
While President Donald Trump doesn't appear worried about inflation, and has even changed his tune about rising prices, a historically expensive stock market definitely cares -- and that's a big problem.
President Trump delivering remarks. Image source: Official White House Photo by Daniel Torok.
