Looking Back to Inflation Lessons from the 1970s

Looking Back to Inflation Lessons from 1970s

Two large U.S. bank failures and the takeover of another large global bank weakened confidence in the global banking system, but central banks and governments stepped in to bolster confidence. As soon as these events occurred, many believed the Fed would have to stop raising rates and would pivot to support the economy. However, the Fed proceeded with another rate hike last week as it firmly believes its top priority is to bring inflation down. Fed Chairman Powell has often referred to the policy actions of the 1970s during his press conferences. In this short video, we look back at the 1970s for a little bit of a history lesson as to why the Fed may likely stay aggressive in its current fight against inflation even as economic risks rise.

If you have further questions about the video, please reach out to a member of your service team or contact Homrich Berg at 404.264.1400.

Watch here: https://youtu.be/tYXFQPpZoh8?si=18rlueZbt6aDhfMa

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Ross Bramwell, CFA


Ross joined Homrich Berg in 2013. He has 20 years of experience across the accounting, financial services, and investment industries. Currently, he serves as a member of the Homrich Berg Investment Committee and manages the firm’s real estate platform. Ross leads the due diligence efforts within real estate which covers commercial real estate, such as multifamily, office, industrial, retail, among others, as well as residential. He also takes the lead on client communications and presentations that focus on the economy and markets. He often participates in client meetings to discuss investment allocations, the markets, and private alternatives.