{"id":2559,"date":"2021-04-29T16:42:39","date_gmt":"2021-04-29T16:42:39","guid":{"rendered":"http:\/\/www.wealthatwork.co.uk\/jpm\/2021\/04\/29\/market-update-29th-april-2021\/"},"modified":"2021-04-29T17:04:36","modified_gmt":"2021-04-29T17:04:36","slug":"market-update-29th-april-2021","status":"publish","type":"post","link":"https:\/\/www2.wealthatwork.co.uk\/jpm\/2021\/04\/29\/market-update-29th-april-2021\/","title":{"rendered":"Market Update – 29th April 2021."},"content":{"rendered":"
[vc_row][vc_column][vc_raw_html]JTNDaWZyYW1lJTIwd2lkdGglM0QlMjI1NjAlMjIlMjBoZWlnaHQlM0QlMjIzMTUlMjIlMjBzcmMlM0QlMjJodHRwcyUzQSUyRiUyRnd3dy55b3V0dWJlLmNvbSUyRmVtYmVkJTJGcnMxTEFuN1JUcGclM0ZyZWwlM0QwJTIyJTIwdGl0bGUlM0QlMjJZb3VUdWJlJTIwdmlkZW8lMjBwbGF5ZXIlMjIlMjBmcmFtZWJvcmRlciUzRCUyMjAlMjIlMjBhbGxvdyUzRCUyMmFjY2VsZXJvbWV0ZXIlM0IlMjBhdXRvcGxheSUzQiUyMGNsaXBib2FyZC13cml0ZSUzQiUyMGVuY3J5cHRlZC1tZWRpYSUzQiUyMGd5cm9zY29wZSUzQiUyMHBpY3R1cmUtaW4tcGljdHVyZSUyMiUyMGFsbG93ZnVsbHNjcmVlbiUzRSUzQyUyRmlmcmFtZSUzRQ==[\/vc_raw_html][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]There has been a multitude of announcements and meetings to keep us busy this week, but given all the talk about how inflation is building, the big one was the outcome of last night\u2019s Fed monetary policy meeting and accompanying press conference.<\/p>\n

As we have previously warned, a sharp rise in global inflation in the coming months is a foregone conclusion as last year\u2019s big oil price decline is replaced by this year\u2019s higher oil price.<\/p>\n

Additionally, we may also see some price rises for food and electronic goods, as droughts and freezes are reducing supplies of some foods, while a semiconductor shortage is starting to disrupt the steady production of cars, phones, computers, etc.\u00a0 However, at this stage it is hard for us to say whether or not any of this will end up being passed on to consumers.<\/p>\n

Nevertheless, we believe a sustained rise in inflation is unlikely – in other words, as the increase in inflation we will see in the coming months is transitory, it won\u2019t have any impact on the longer-term inflation outlook.<\/p>\n

Thankfully, while the Fed\u2019s monetary policy meeting was this week\u2019s big focus, the outcome was uneventful.<\/p>\n

While the Fed acknowledged that the economic outlook is getting brighter and inflation readings are rising rapidly, they reiterated that policymakers were in no hurry to increase US interest rates.<\/p>\n

This is great news as a policy mistake by the central bank could easily have hurt the economic recovery – despite the fact that there is clearly a lot of pent-up demand which will ensure the US (and global) economy grows strongly this year, the resurgence in infection cases in India and Japan highlight that the coronavirus outbreak is far from over and loose monetary policy is needed to support the economy and strengthen the employment market. \u00a0And more importantly, with the Fed committing to keep its foot on the pedal until \u201csubstantial further progress\u201d is made towards its dual mandate on employment and inflation, it is clearly very bullish for global equity markets.<\/p>\n

Investment Management Team<\/strong>[\/vc_column_text][\/vc_column][\/vc_row]\n <\/div> ","protected":false},"excerpt":{"rendered":"

There has been a multitude of announcements and meetings to keep us busy this week, but given all the talk about how inflation is building, the big one was the outcome of last night\u2019s Fed monetary policy meeting and accompanying press conference.<\/p>\n","protected":false},"author":1,"featured_media":2563,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"_links":{"self":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/2559"}],"collection":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/comments?post=2559"}],"version-history":[{"count":1,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/2559\/revisions"}],"predecessor-version":[{"id":2561,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/2559\/revisions\/2561"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/media\/2563"}],"wp:attachment":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/media?parent=2559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/categories?post=2559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/tags?post=2559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}