Shares week forward: How lengthy will inflation final? The reply lies up to now

Stocks week ahead: How long will inflation last? The answer lies in the past


So the central bank has broken up with “transitory” and set its eyes on a new inflation-modifying term: entrenched. 

“It’s our job to make sure that inflation of that unpleasant high nature doesn’t get entrenched in the economy,” said Fed Chair Jerome Powell last Wednesday, just after he announced a half-point interest rate hike to combat inflation. 

It’s unclear what exactly entrenched inflation looks like or how we’ll know if we’ve reached it. The Fed has given very little guidance in general on how long they predict it will take for their interest hikes to lower inflation. “It’s a very difficult environment to try to give forward guidance 60, 90 days in advance,” said Powell last week. “There are just so many things that can happen in the economy and around the world.”

There’s nothing investors hate more than uncertainty, and as increasing rates pummel US markets, they want more guidance. Americans, who have been hard-hit by rising gas and food prices also want to know when they…