Inflation 2021 is a hot topic at the moment as investors wonder if they should worry about possible rising interest rates. That’s resulted in Berkshire Hathaway (NYSE:BRK.A,BRK.B) chairman and CEO Warren Buffett, as well as United States Secretary of the Treasury Janet Yellen commenting on the matter.
In the case of Warren, he has this to say about inflation, as collected from Seeking Alpha.
“We’re seeing very substantial inflation – it’s very interesting. I mean, we’re raising prices. People are raising prices to us. And it’s being accepted… The costs are just up, up, up. Steel costs, you know, just every day, they’re going up… But there’s more inflation going on than – quite a bit more inflation going on than people would have anticipated just six months ago or thereabouts.”
The United States Secretary of the Treasury was much more resistant to admitting that inflation was on the way. Yellen continued to claim that inflation wasn’t a problem and that the U.S. had nothing to worry about.
However, Yellen changed her tune just a couple of days ago. This resulted in her making the following statement, as covered by Bloomberg News reporter Saleha Mohsin.
“It may be that interest rates will have to rise a little bit to make sure our economy doesn’t overheat.”
We actually already started seeing the effects of Yellen’s comments yesterday. Following her remarks, several tech companies saw their stocks fall. That comes as investors shrink or leave their positions in the companies ahead of inflation 2021 and interest rate risks.
Rising inflation in 2021 will also likely have an effect on the average consumer. They can expect to see the price of goods increase as businesses pass on the expense to them.
With inflation 2021 fears mounting, investors will want to make sure they keep a careful eye on the stock market.
That includes some of the biggest stories today. They focus on companies such as Rocket Companies (NYSE:RKT), Skillz (NYSE:SKLZ), and Five Star Bancorp (NASDAQ:FSBC). Investors can get up to speed on what’s happening with these stocks at the links below.
More Wednesday Stock News
- RKT Stock: 14 Reasons Why Popular Reddit Stock Rocket Is Trending Today
- SKLZ Alert: Why Is Skillz Stock Dropping Today?
- Five Star Bancorp IPO: 7 Things for Potential FSBC Stock Investors to Know
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.