The Federal Reserve Makes Significant Progress in Reducing Inflation: David Darst Speaks to Bloomberg Asharq

Bloomberg Asharq hosted David Darst, CFA, Senior Advisor and Investment Strategist at The Family Office, to discuss the decline in US inflation due to the policies of the Federal Reserve (the “Fed”), which outperformed European central banks in this regard. Below are the highlights of the interview:

The Fed focused on labor costs to reduce inflation, which decreased from 9% to 5%. In Europe, inflation is still between 6.9% and 7%, indicating that the Fed has outperformed European central banks.

Reducing inflation from 5% to the targeted 2% will not be that easy.

Earnings will decline more than expected due to inflation and other factors, which will lead to a persisting bearish market.

The decline in oil prices is good news in this regard, and it stimulates spending.

Watch the full interview above.