Economy and Trading

1970s Inflation Pattern Reemerges: What Investors Need to Know About Current Economic Parallels

Market strategists identify troubling inflation patterns resembling the 1970s era, with core PCE failing to return to Fed targets. Historical parallels suggest potential stagflation risks as energy prices and Fed independence concerns echo previous economic turmoil.

Financial markets are facing a potentially troubling development as inflation patterns emerge that bear striking resemblance to the dreaded 1970s era. According to Peter Corey, chief market strategist at Pave Financial, investors should closely examine the shape of the Federal Reserve‘s preferred inflation gauge compared to its behavior during the administrations of Presidents Nixon, Ford and Carter.

The 1970s Inflation Blueprint Repeating

Business AcquisitionEconomy and Trading

Wall Street Banking Rebound: Goldman Sachs, JPMorgan, Citigroup Surge Past Expectations

After nearly three years of sluggish performance, Wall Street’s biggest banks are experiencing a significant rebound in investment banking activity. Goldman Sachs, JPMorgan, and Citigroup all reported stronger-than-expected third-quarter results as mergers, acquisitions, and underwriting activity accelerate across global markets.

Wall Street’s investment banking sector is showing robust signs of recovery after nearly three years of pandemic-era volatility and economic uncertainty. Major financial institutions including Goldman Sachs, JPMorgan Chase, and Citigroup have all reported stronger-than-expected third-quarter results, signaling that the prolonged dealmaking drought that has affected banker compensation and morale may finally be easing.