🚨 The Fed could be flummoxed

This inflation data could test the Fed | Volkswagen’s shelling out on its EV dreams | [Finimize]( Hi {NAME}, here's what you need to know for March 15th in 3:06 minutes. 💰 Returns are nice and all, but tax-free returns are even better. So join Hargreaves Lansdown’s Sophie Lund-Yates for [Five Shares For ISAs]( next Monday, and find out what five likely-looking stocks could bulk up your ISA this year. [Get your free ticket]( Today's big stories - US inflation data won’t make the Fed’s job any easier - Here are some of the newest and weirdest ETFs – [Read Now]( - Volkswagen put its money where its mouth is in a bid to reach its lofty EV goals Numb And Number [Numb And Number] What’s Going On Here? Tuesday’s [inflation]( figures won’t soothe the poor bruised Federal Reserve (the Fed). What Does This Mean? The Fed was thinking of speeding up interest rate hikes just a few days ago, but the collapse of Silicon Valley Bank (SVB) will have given it pause for thought – and maybe a few pangs of conscience for good measure. After all, the Fed’s record-fast rate hikes helped set up some of the dominoes that toppled SVB. And if that debacle didn’t muddy the waters enough, February’s inflation data has come along to finish the job. On the one hand, the 6% annual rise and monthly uptick of 0.4% were pretty much what folk expected. But on the other, the slowdown in goods inflation seems to be wearing off – bad news, given that’s been a key factor calming inflation over the last few months. Why Should I Care? For markets: Always look on the bright side of life. Inflation’s still way above the Fed's 2% target, but there are a few facts the central bank can take comfort in. First off, February's inflation wasn't worse than anticipated, which is definitely a relief for policymakers. Secondly, over 70% of the monthly increase in inflation came from accommodation costs – and that could be the silver lining. See, there’s a lag in the accommodation data used to calculate inflation, and real-time measures are already showing that rent’s starting to drop. So the true headline figure is probably lower than 6% – which could give the Fed some breathing room when it comes to future hikes. The bigger picture: Good news for the big dogs. The dust that SVB kicked up is settling a little, with US banks – especially regional players – seeing their stocks regain some mojo on Tuesday. But customers are still taking no chances: the top six US banks, deemed too big to fail, have been [flooded]( with panicky cash in the last few days. You might also like: [Here’s an investing lesson you can take from Silicon Valley Bank’s collapse.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Numb And Number&utm_campaign=daily-global-15-03-2023&utm_source=email) Analyst Take Not All ETFs Are The Same: Here Are Some Of The Stranger Ones [Not All ETFs Are The Same: Here Are Some Of The Stranger Ones]( By Russell Burns, Analyst The world’s [five biggest ETFs](, with some $1.3 trillion under their collective belts, all do exactly the same thing: they invest in US stocks by [passively tracing the market](. But set those passive index funds aside, and [there’s a lot more]( to the $10 trillion US ETF market. It’s got just about [everything you could want]( – investments based around sectors, themes, and so on. Plus, new and sometimes [unusual stuff]( is added all the time. So, that’s today’s Insight: [a look at some of the oddball ETF launches that caught my attention lately.]( [Read or listen to the Insight here]( Meet your future community Let’s face it, even the best brands need a little push to [reach the right audience](. Our [one-million-strong community of modern investors]( is clever, clued-in, and keen to learn. In short, they’re exactly the type of folk you want to reach. So whether you’re an established brand, scaleup, or startup, [our promotional campaigns]( can help you reach the right audience at the right time. Your tailored campaign will make the most of all the Finimize channels, including live event and Summit showcases, social media blasts, and curated newsletter placements – [yup, right here](. Introduce yourself to your future community with Finimize. [Get In Touch]( Turn On, Plug In, Sell Cars [Turn On, Plug In, Sell Cars] What’s Going On Here? Volkswagen (VW) [announced]( a high-voltage jolt to its EV investments on Tuesday. What Does This Mean? Europe's biggest carmaker VW has some lofty ambitions: the firm’s going all-in on EVs, in the hope that green-powered cars will account for half of its sales by 2030. But to pull that gambit off, it’s going to need a lofty budget too. See, the moves VW’s making in the battery space are pretty pricey – six factories in Europe don’t come cheap – and sourcing raw materials to make EVs is a major cash drain. And there are even more expenses in the cards: the firm’s expanding in the US and China (its biggest market) to try and fend off growing competition. All in all, then, VW’s planning to shell out over $190 billion on those key areas over the next five years – with over two-thirds earmarked for electrification and digitization. Why Should I Care? For markets: Cash crunch. VW might've plumped up profit across all its brands last year, but repeating that feat this year could prove tricky. For one, VW hiked prices when customers couldn’t get their hands on new cars last year, which added polish to 2022's shining performance. But this year, supply shortages are expected to ease, so folks won't be so willing to pay a premium for speedy delivery. And for another, VW's planned spending spree made investors worry about its cash flow – which might be why shares dropped when news broke. The bigger picture: Accelerating market. VW’s pushing in the right direction, mind you: data out last month [showed]( that spending on EVs is surging, with annual sales hitting $388 billion last year – up 53% from 2021. And what's even more impressive is that the last 18 months accounted for nearly 60% of the total EV spending ever. No wonder analysts are predicting another record-breaking year, forecasting that sales will overshoot $500 billion in 2023. You might also like: [What investors are getting wrong about the EV market right now.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Turn On, Plug In, Sell Cars&utm_campaign=daily-global-15-03-2023&utm_source=email) 💬 Quote of the day “Habit is a cable. 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