{"id":272986,"date":"2021-06-12T19:03:00","date_gmt":"2021-06-12T16:03:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/here-is-where-higher-inflation-really-hurts-says-worlds-largest-asset-manager\/"},"modified":"2021-06-12T19:03:00","modified_gmt":"2021-06-12T16:03:00","slug":"here-is-where-higher-inflation-really-hurts-says-worlds-largest-asset-manager","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/here-is-where-higher-inflation-really-hurts-says-worlds-largest-asset-manager\/","title":{"rendered":"#\n  Here is where higher inflation really hurts, says world\u2019s largest asset manager"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a35fca5a9f46\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a35fca5a9f46\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/here-is-where-higher-inflation-really-hurts-says-worlds-largest-asset-manager\/#Families_with_lower_incomes_hurt_most_by_soaring_used-car_gasoline_prices\" >Families with lower incomes hurt most by soaring used-car, gasoline prices<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/here-is-where-higher-inflation-really-hurts-says-worlds-largest-asset-manager\/#Used_cars_and_soaring_CPI\" >Used cars and soaring CPI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/here-is-where-higher-inflation-really-hurts-says-worlds-largest-asset-manager\/#Joy_Wiltermuth\" >Joy Wiltermuth<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Here is where higher inflation really hurts, says world\u2019s largest asset manager<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Families_with_lower_incomes_hurt_most_by_soaring_used-car_gasoline_prices\"><\/span>\n  Families with lower incomes hurt most by soaring used-car, gasoline prices<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000302239\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Bond markets may be shrugging off concerns about the spike in the cost of living in the U.S., but higher prices at the pump, for used cars and at grocery stores inflict a \u201cdirect hit\u201d to lower-income households, warns BlackRock\u2019s Rick Rieder, CIO of global fixed income.<\/p>\n<p> \u201cThat problem is that inflation in daily necessities is disproportionately felt by lower-income cohorts,\u201d wrote Rieder, who oversees several key funds at the $2.6 trillion fixed-income asset manager, in a Thursday note, following the release of a second \u201cblockbuster\u201d monthly of inflation data.<\/p>\n<div class=\"paywall\">\n       The consumer price-index for May surged to a 13-year high of 5%, its highest level since 2008, when the cost of oil hit a record $150 a barrel. <\/p>\n<p>Surging prices largely have been attributed to the U.S. economy more fully reopen from the pandemic. The Federal Reserve expects the trend to be temporary, making it more willing to tolerate price swings while it seeks to stoke a more robust economic rebound and labor market recovery in the wake of the coronavirus pandemic. <\/p>\n<p>Rieder noted that a key catalyst of recent CPI gains has been skyrocketing <a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/Used%20cars%20and%20housing%20costs%20drove%20inflation%20last%20month\" class=\"icon none\">used-car prices<\/a>, which shot up another 7.3% in May, or 30% from a year ago.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:77.265625%;\" data-mobile-ratio=\"77.265625%\" data-layout-ratio=\"77.265625%\" data-subtype=\"photo\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-352214?width=140&amp;size=1.294236602628918 140w,\nhttps:\/\/images.mktw.net\/im-352214?width=540&amp;size=1.294236602628918 540w,\nhttps:\/\/images.mktw.net\/im-352214?width=620&amp;size=1.294236602628918 620w,\nhttps:\/\/images.mktw.net\/im-352214?width=700&amp;size=1.294236602628918 700w,\nhttps:\/\/images.mktw.net\/im-352214?width=860&amp;size=1.294236602628918 860w,\nhttps:\/\/images.mktw.net\/im-352214?width=1260&amp;size=1.294236602628918 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-352214?width=620&amp;size=1.294236602628918\" data-enlarge=\"https:\/\/images.mktw.net\/im-352214?width=1260&amp;size=1.294236602628918\" alt=\"\" title=\"Used cars and soaring CPI\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"Used_cars_and_soaring_CPI\"><\/span>Used cars and soaring CPI<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>      <span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            BlackRock<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<p>       \u201cIt\u2019s become abundantly clear that certain parts of the economy don\u2019t have sufficient product inventory to supply the demand at current prices and the data illustrating this today is overwhelming,\u201d he wrote, while pointing to supply-chain disruptions that have roiled the auto sector during COVID.<\/p>\n<p><strong>Related<\/strong>: Shortages of chips and parts aren\u2019t denting <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eal of auto bonds <\/p>\n<p>But Rieder also stressed that \u201cused car inflation, or gasoline prices 56% higher over the past year (and 8% higher than pre-Covid levels), are a direct hit to lower income households, especially as they attempt to re-enter the job market.\u201d<\/p>\n<p>BlackRock ranks as the world\u2019s largest<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.institutionalinvestor.com\/article\/b1r5jzgktf21t6\/BlackRock-the-World-s-Biggest-Asset-Manager-Is-Also-the-World-s-Strongest-Asset-Management-Brand\" class=\"icon none\"> asset manager<\/a>.  That no doubt adds heft to what the firm\u2019s top asset managers say about financial conditions and the economy. But BlackRock has been far from alone in expressing concern about the Fed\u2019s new policy to let inflation, at least temporarily run, above its 2% target.<\/p>\n<p><strong>Read<\/strong>: Many investors \u2018will be fine\u2019 as inflation climbs. But \u2018day-to-day people\u2019? Maybe not, investment manager says<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>For now, the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sifma.org\/resources\/research\/fixed-income-chart\/\" class=\"icon none\">biggest part<\/a> of the U.S. bond market has shrugged off fears that the recent surge in inflation might have staying power. The yield on the 10-year Treasury note<br \/>\n        TMUBMUSD10Y,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.000%\" channel=\"\" class=\"\">1.452%<\/bg-quote><br \/>\n       on Thursday briefly rose after the May CPI data release, but was last traded around 1.48%, its lowest since early March.<\/p>\n<p>U.S. stock benchmarks were hovering near records Thursday, with the Dow<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"positive\">+0.04%<\/bg-quote><span>,<\/span><br \/>\n        S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"positive\">+0.19%<\/bg-quote><br \/>\n       and Nasdaq Composite Index<br \/>\n        COMP,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598365\/realtime\" class=\"positive\">+0.35%<\/bg-quote><br \/>\n       all heading higher.<\/p>\n<p>\u201cIn our view, the pursuit of inflation merely for inflation\u2019s sake poses a very real problem: That problem is that inflation in daily necessities is disproportionately felt by lower-income cohorts,\u201d Rieder wrote.<\/p>\n<p><strong>Read Next<\/strong>: Why the Fed\u2019s focus on those hardest-hit by the pandemic matters for markets<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Joy Wiltermuth\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Joy_Wiltermuth\"><\/span>Joy Wiltermuth<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-749C-9F6E8E649C70%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Here is where higher inflation really hurts, says world\u2019s largest asset manager &#8221; Families with lower incomes hurt most by soaring used-car, gasoline prices Bond markets may be shrugging off concerns about the spike in the cost of living in the U.S., but higher prices at the pump, for used cars and at grocery&#8230;<\/p>\n","protected":false},"author":1,"featured_media":272987,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-272986","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/272986","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=272986"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/272986\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/272987"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=272986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=272986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=272986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}