Why Can US Inflation Affect Your Investments?

In order to stimulate the economy, the US Federal Reserve (Fed) lowered its base interest rate to almost zero and implemented a program to repurchase government bonds to increase liquidity in the financial system – that is, in practice, he would run more cash.

With lower interest rates and higher cash flow, the search for products and services increases. One consequence of this, as is known in the economy, is an increase in inflation – the demand for these products and services is greater than the supply, and prices are forced to rise.

Inflation in the country was 0.8% compared to March, which is above the projected level of 0.2%, well above the annual target of 2%. "This undoubtedly signifies a possible change in the country's monetary policy, which is of some concern to investors," said Felipe Bevilacqua, an economist and analyst at Levante Ideas de Investmento. Why is high inflation worrying investors in the United States? What does the North American indicator have to do with your investments? See the economist's analysis below, and learn about a fund that trades in wildlife – affected Brazil.

This is one of the portfolios recommended by the financial analyst. For those who have not yet made a recommendation, here they are:

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