Fed Will Keep Rates High Thanks to Inflation Fueled by Corporate Greed, Investors Say
Surging profit margins that helped drive inflation will recede, according to majority of investors in Bloomberg survey.
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Soaring corporate profits are a big part of the inflation problem, and keeping interest rates high is the best way to rein them in, according to Bloomberg’s latest poll of professional and retail investors.
Some 90% of 288 respondents in a Markets Live Pulse survey said companies on both sides of the Atlantic have been raising prices in excess of their own costs since the pandemic began in 2020. Almost four out of five said that tight monetary policy is the right way to tackle profit-led inflation.