Stagflation is a potential concern for 2025 due to rising commodities prices and Federal Reserve actions

From Investing.com: 2025-01-13 02:14:00

The Goldman Sachs Commodity Index has shown an increase in price since the beginning of 2025, with the Real Motion Indicator and Leadership indicator pointing to momentum and outperformance. The Federal Funds Rate has decreased since its peak in early 2024, currently standing at 4.70. Possible scenarios include commodities rising if the Federal Reserve keeps rates steady, stocks potentially seeing muted gains, or the Fed lowering rates to boost the economy. Armchair economists suggest that stagflation could be a concern for 2025, with potential implications for the markets. In terms of ETFs, key levels to watch include the S&P 500 at December lows, the 200-DMA for the Russell 2000, and the 50-DMA for the Nasdaq.



Read more at Investing.com: Is Stagflation Back on the Table for the Economy?