Traditionally, I’ve been a little cautious when people say, “it’s different this time.” After all, the past few years have seen more financial “firsts” than most.
But despite that skepticism, this year saw five interest rate increases in seven months — making it the quickest tightening cycle in modern history.
And with two more rate increases expected in November and December of this year, it seems clear that Fed Chair Jerome Powell is determined to keep adjusting rates until inflation is on track to hit the Fed’s target.
The Fed knows that few financial events can be as devastating as high inflation over time – especially for those living on a fixed income. So the Fed is comfortable with some short-term economic uncertainty in pursuit of its long-term goal of price stability.
We are optimistic the Fed has a plan to tame inflation. In the meantime, if you have any concerns or questions about the current financial landscape, let us know. We are always happy to hear from you.