The invisible tax, inflation

The Biden Government admitted that the inflation index would be Tall, this is due to a rise in the price of fuels and food. After this statement, all eyes are on the Fed.

Inflation in North America reached a 9.1% year-on-year, Which is close to the highs since 41 years old. Because of this, the focus is now on Federal Reserve, and the decision it makes about maintaining the expected rate of increase in the interest rate, or accelerating it.

The press secretary of Biden, Karine Jean Pierre, had acknowledged that the government expected that the the inflation indicator was high, which would be reflected in the price of food and fuel. But, at the same time, he maintained that this data was Out of Date, since the price of gasoline had started to fall in July. Some of the most important consulting firms expected the index to be a 8.8% year-on-year.

In this scenario, the president's next trip is of great importance. Joe Biden, which is addressed to Middle East. On this trip you will try to convince the main countries in the region that It produces more oil, in order to achieve a stabilization in fuel prices.

Economic studies indicate a decline in fuel values at the beginning of July, so, as a result, they expect a cut in the inflation rate at the end of the period.

What will the Fed do now?

At its last meeting on June 15, the Fed The interest rate increased by 0.75% To a Range Between 1.5% and 1.75%, which turned out to be the most drastic rise in recent years 30 years. This was the third adjustment made by the body that Jerome Powell was in charge of in 2022.

After this debate, the FED confirmed a path of growth of the reference rate to even reach a 3.4% At the end of the year, and he saw as a very certain possibility an adjustment of another 0.7% in July.

“The committee is strongly committed to the objective of returning inflation to 2%,” the U.S. central bank said in response to the aggressive policy adopted last month.

In the same statement, the Fed admitted that it was willing to give up growth and admit an increase in unemployment under the objective of containing inflation

What can investors do in the face of inflation?

As you know, inflation is called “The Invisible Tax”, since it is reducing your capital without you even realizing it. There's a solution for everything, don't worry. For the case of inflation, the main recommendation is Reversal. Each investor must carry out a study to choose the type of investment that best suits each one, but all of them must have something in common, that their Annual return is above the inflation index.

Whether you invest in the stock market or in Tokenized properties, the estimated return must be above inflation, in this way you will ensure that your capital does not lose value in the bank.

In Reental We offer a Safe Real Estate Investment With an estimated return of 9% and 15%, and we stand behind our Security Tokens in the value of each of the properties, which means that the value of these tokens does not fluctuate, and when it does, it does so at Upswing.

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