Fed rate increase = lower hifi prices?

I'm not sure if the rate increases will drastically impact the Cost of Goods Sold.

There have been some specific triggers to increased Cost of Goods Sold over the last 24 months or so:

1. Supply is less than demand in the logistics area resulting in all companies having increased inbound/outbound transportation costs
2. Numerous commodities have been supply constrained - increased demand, reduced capacity or combination of the two.  Prices has increased significantly for metals, computer chips and many other specific items.
3. Many companies have increased their sales prices.  

I recognize there are bad actors; I think pressure to keep pricing constant was removed due to the significant fall and return of demand and the financial liquidity pressures immediately following the 'shut down'.

I think prices will be more influenced by demand than interest rates.

@daveyf, the reason I have used this economist for 15 yrs is because they did make my business a fortune so I don't have to rely on Vegas :)  They don't forecast the stock market either.  And, yes, no one has a crystal ball and they didn't predict covid or Ukraine or any other black swan event that comes our way.

The real gist of this thread is prices are high and maybe or hopefully they will come down.  All I am saying is that the input costs into these products including labor are not forecasted to go down anytime soon.  We may be waiting awhile to see it happen.  So if a reader is holding back on purchasing something, consider that the price could go up 20% over the next 4 yrs so you'll need a 20% reduction just to get to the same "high" price point as today.  Of course 4 yrs from now, todays price will be a "deal" and won't be considered "high".

I told my sales team this week:  The best time for a customer to purchase our industrial equipment at the lowest forseeable cost is today.

@greenngoldcheesehead 

Name the firm please.

Thought on the Bank of England predicting inflation could reach 10% by the end of the year and that could be coupled with a recession?

With 4-5% inflation without compensatory growth, that would suggest a potential for significant decline of the stock market total asset valuation

That’s just simply not true.  Using a 2022 S&P500 earnings estimate of 230 the current earnings yield is 5.5%, which leaves quite a bit of leeway for rates to rise before putting pressure on stocks (yes, I’ve done the research).  My expectation is after the dust settles we’ll head back down more to the 3% inflation range given our base rate for years has been stuck at less than 2%, but we’ll see.