Investors Predict Fed to Maintain High Rates Due to Corporate Greed-Driven Inflation.

According to a Bloomberg survey of professional and retail investors, soaring corporate profits are contributing to the current inflation problem, and most respondents believe that keeping interest rates high is the best way to address it. The survey also found that the retail sector has seen the most opportunistic pricing during the pandemic, and the energy industry came in second. The majority of respondents expect profit margins to recede to pre-Covid levels, but some believe that better enforcement of antitrust laws and higher corporate taxes could be alternative solutions to tighter monetary policy.