Inflation is stubbornly high, and the Federal Reserve has been aggressively raising interest rates in its efforts to bring it down. Since March, the Fed has hiked the benchmark federal funds rate from essentially zero to over 3%, -- the fastest it has boosted rates in decades. One rock-solid fintech that has been caught up in the wave of selling is LendingClub (NYSE: LC).
The first eight months of 2022 have been absolutely brutal for growth stocks. A toxic combination of rising interest rates, reopening headwinds for pandemic beneficiaries, and tepid consumer spending have all conspired to send even high-quality growth stocks down by huge amounts. In fact, when looking at recent operating metrics for last year's darlings, Sea Limited (NYSE: SE) and LendingClub (NYSE: LC), there's still a lot to like.
Recently, data for both the Consumer Price Index and Producer Price Index came in better than expected for July. Investors use these indexes to gauge how inflation is trending, and both now suggest inflation may have peaked last month. The declines were led by a drop-off in energy prices, so if this trend reverses, high inflation could persist.