Last month, the Labor Department released the latest consumer inflation numbers, giving the U.S. a 2.1 percent inflation rate.
According to Steve Freed of ADM Investor Services, quite a few economists are talking about potentially higher inflation rates coupled with talk the Fed will increase interest rates.
Freed told Market Rally host Chip Flory Thursday this isn’t “out of control” inflation that was seen in the early 80s. Rather, it’s more “like a bump up” on specific commodities like copper and crude oil, things the Chinese buy.
“In the early 70s, there was no bond market, so people bought soybeans when it looked like there was inflationary issues,” said Freed.
Listen to Freed on Market Rally discuss the Brazilian crop situation and why appointing Iowa Gov. Terry Branstad as the Chinese ambassador as a “good sign” on Market Rally above.