If you’ve read any of our articles about financial trends, you probably know the economy is shakier than Katherine Hepburn’s head on a helicopter ride. Things are about to get crazier, because it looks like the Fed’s going to raise rates again.
Here’s Five Fast Facts About The Fed’s Rate Hike:
- 📈 Rise Up - Michelle Bowen, the Federal Reserve Governor, said that inflation continues to be too high, and that it’s going to require tightening monetary policy… again. She said it’s necessary to get back down to their 2% inflation rate target.
- 🔌 Power - She also noted that high energy prices (hi, Wisconsin!) could actually cause inflation to rise again.
- 🧑💼 Jobs Jobs Jobs - One of the reasons they’re considering a raise are the job numbers. The economy added almost twice as many jobs as expected in September, and that has led to higher job gains. In other words, more people are working, which means they think more people can afford the higher rates…
- 🤷 Same Ol’ Same Old - So what does this mean? The Fed’s interest rate will sit at 5.25%-5.50% for a while or until they (likely) raise it again.
- 🤫 Keeping Mum - It should be noted that Bowman never actually said whether she’d support a rate hike or not. Tricky, tricky.
🔥Bottom line: You can take a lot away from this information and part of it is that our economy continues to be strong, even though things are really expensive. On top of that, the higher interest rates aren’t stopping Americans from making major purchases. Again, the normal rules no longer apply here.
What do you think of the potential increase?
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