Published on 23 Mar 2023 on Zacks via Yahoo Finance

Worried Over Interest Rates? Check Out 3 Oil Pipeline Stocks

With the current banking chaos and stubborn inflation, the Federal Reserve concluded its two-day policy meeting on Wednesday by sticking to its plot and raising interest rates by another 25 basis points. This brings the Fed funds rate range to 4.75-5.00% — the highest level since 2007.  For investors, who have seen their holdings erode amid the price rise, one of the key themes is to use the energy pipeline space to wade through this period of macro volatility. In this context, investing in the likes of MPLX LP MPLX, Magellan Midstream Partners MMP and Enterprise Products Partners EPD might offer some respite to investors.

Inflation Affects Purchasing Power

In the United States, several measures of inflation show it to be more stubborn than previously expected. Despite some moderation from last summer’s 40-year high level, inflation continues to be entrenched.The outbreak of coronavirus has significantly devastated the global supply-chain system in the last two years. Input costs have soared for businesses, while wages have gone up owing to the shortage of labor. At the same time, strong pent-up demand, supported by massive personal savings during this period, has resulted in soaring prices.Market participants are highly concerned that inflation will remain elevated in the near term. At present, the banking crisis and the lingering war between Russia and Ukraine are the biggest threats to the global economy. As long as the uncertainties persist, chances are bleak that we will get rid of the elevated inflation. While the cost of going to the supermarket or ordering meals from restaurants has clearly spiked for consumers, another worrying side effect of inflation is that it eats into the returns generated by financial instruments such as equities and bonds by eroding their value.