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The main finance serviceman of Andersen Capital Management said lipid prices could impact nan Federal Reserve arsenic its policymakers find their adjacent measurement connected liking rates.
"As Liz Peek had mentioned precocious successful her op-ed, you know, this will coming a velocity bump to immoderate of nan Fed calculus that’s retired there," CIO Peter Andersen told "Mornings pinch Maria" connected Monday. "And arsenic oil prices rise, certainly, you know, location is going to beryllium an mentation of that arsenic inflation."
The Peek-authored sentiment piece he referenced was published Thursday by The Hill.
An lipid pump jack pumps lipid successful a section adjacent Calgary, Alberta, Canada connected July 21, 2014. (REUTERS/Todd Korol/File Photo / Reuters Photos)
On Monday afternoon, nan Brent Crude came successful astatine $90.64.
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Andersen told big Maria Bartiromo nan Fed is "not successful an easy stroll" erstwhile it comes to deciding whether to cut, support aliases raise its benchmark liking rate.
He said nan "specter of higher lipid prices" and different economical information for illustration that successful nan precocious released March jobs study could make nan determination difficult for nan U.S. cardinal bank.
"I deliberation we thought nan Fed was going to beryllium very easy-going aft these tremendous complaint hikes, but it’s not looking very clear for them," he added. "I expect that they’ll beryllium very frustrated, frankly, for nan adjacent respective weeks arsenic they effort to fig retired conscionable what nan heck is going connected pinch nan economy."
An eagle tops nan U.S. Federal Reserve building's destruction successful Washington, July 31, 2013. (REUTERS/Jonathan Ernst / Reuters Photos)
When nan Federal Open Market Committee (FOMC) sewage together successful March, it announced its determination to time off its benchmark liking complaint astatine 5.25% to 5.5%, a level it has been group astatine since nan summer. Federal Reserve policymakers besides indicated precocious past period that plans to trim rates whitethorn beryllium pushed retired further but remained committed to 3 this year.
FED LEAVES INTEREST RATES UNCHANGED, SAYS THREE CUTS STILL PLANNED
The FOMC said successful a March connection it was "strongly committed to returning ostentation to its 2 percent objective" and "will return into relationship a wide scope of information, including readings connected labour marketplace conditions, ostentation pressures and ostentation expectations, and financial and world developments."
When it comes to nan banal market, Andersen said he has "tried to bypass nan full question" of liking complaint cuts "by looking astatine stocks that mightiness beryllium immune to complaint cuts."
He pointed to cybersecurity arsenic an illustration of a "promising" industry, saying, "That isn’t going to spell anywhere, and pinch nan much caller announcement of immoderate of these hackings by ransomware, I deliberation that’s a awesome spot to play your awesome positions successful a portfolio correct now." He besides mentioned artificial intelligence-related stocks.
GAS PRICES CREEP UP AMID RISING OIL PRICES DUE TO MOUNTING TENSIONS BETWEEN RUSSIA AND UKRAINE
His comments came up of nan expected Wednesday merchandise of nan latest Consumer Price Index (CPI) data by nan Bureau of Labor Statistics. That accusation will beryllium followed Thursday by nan Producer Price Index (PPI).
In February, ostentation measured by nan CPI went up 0.4% month-over-month and 3.2% year-over-year overall. Gasoline prices posted a 3.8% summation from January but were down 3.9% from a twelvemonth earlier.
In this photograph illustration, a state pump is filling up a conveyance astatine a Chevron state position connected December 05, 2022 successful Houston, Texas. U.S. state prices person dropped towards $3 a gallon, pinch world state prices having steadily dropped since June. (Brandon Bell/Getty Images / Getty Images)
AAA reported Monday nan nationalist mean for a gallon of regular state was $3.598.
Suzanne O’Halloran contributed to this report.
