To curb inflation, wage growth will be 'critical': Analyst

The Federal Open Market Committee (FOMC) decision on interest rates will be announced on Wednesday, adding to a week that also includes highly anticipated Big Tech earnings reports and the closely watched jobs report. To provide insight into what these events could mean for inflation outlooks, 22V Research President Dennis DeBusschere joins Market Domination.

DeBusschere believes that the Fed will maintain higher interest rates for an extended period until inflation is "under control." DeBusschere notes that inflation "keeps creeping higher," making it "critical" to rein it in. He notes surprise that yields haven't risen higher given the persistence of hot inflation data.

According to DeBusschere, the wage growth metric is "critical" for curbing inflation. While wage growth has moderated, DeBusschere explains that it "stalled," fueling concerns that inflation could remain elevated. This, in turn, could lead to higher unemployment rates and "tighter financial conditions."

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Editor's note: This article was written by Angel Smith