“Federal Reserve Chairman Powell’s Warning on Rising Rates: Why Investors Should Consider Other Metrics Too”
DeVere Group CEO Urges Investors to Consider Other Metrics Besides Inflation and Interest Rates
Nigel Green, CEO and founder of one of the world’s largest independent financial advisory, asset management and fintech organizations, deVere Group, has urged investors to consider other metrics besides inflation and interest rates. This comes after Federal Reserve Chair Jerome Powell’s high-stakes appearance before Congress on Tuesday.
Powell told lawmakers that the US central bank will likely raise interest rates more than expected amid strong economic data and that it is prepared to move more aggressively if the “totality” of fresh reports suggests stronger measures are needed to tame inflation.
In a hearing before the Senate Banking Committee, Powell said: “The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is…”
Green believes that investors should not solely rely on inflation and interest rates as indicators of the economy’s health. He said, “Whilst inflation and interest rates are important metrics, they are not the only ones that investors should be considering. There are other factors that can impact the economy, such as geopolitical events, technological advancements, and demographic changes.”
Green added that investors should also consider the impact of climate change on the economy. “Climate change is a major issue that will have a significant impact on the economy in the coming years. Investors should be considering the risks and opportunities associated with climate change when making investment decisions.”
Green’s comments come as deVere Group launches a new climate change investment strategy. The strategy aims to help investors capitalize on the opportunities presented by the transition to a low-carbon economy while also managing the risks associated with climate change.
In conclusion, Green said, “Investors should not be solely focused on inflation and interest rates. They should be considering a range of metrics when making investment decisions, including the impact of climate change on the economy.”