Federal Reserve Chairman Kevin Warsh spoke on September 11th. He gave a warning to all Americans in his speech that inflation is going up. Of course we all have been aware of that. Remember, that food and gasoline are not in those inflation numbers. Because of the inflation numbers they looked at in August, they will probably raise interest rates on September 16th. I believe they will raise them again in the next 6 months. This is the only way they will get inflation under control.
He said, “If the Fed gets inflation wrong and judges the economy wrong, who gets the worst of it? Not the financial highfliers. Hard-working Americans are the ones left to deal with inflation that is too high or jobs that suddenly appear less secure.” He needs to do this to control inflation and stabilize prices. In my estimation, this should have been done years ago under Powell.
They should have learned from the history of the Carter Administration. We had the same scenario we have today but I believe inflation is worse now. During the Carter administration they raised the interest rates and they went up to 20% over a few years. Finally inflation started cooling. Prices went down somewhat but never returned to what they had been. They won’t now either.
I know most people will not like it. But it is a necessity to raise interest rates to get inflation under control. This will raise mortgage rates, loan rates, and credit card rates. Most likely people will not buy homes when the mortgage rates get too high. So your home value may also take a dive.
Inflation is making everything cost more. We all know that the necessities of food, most products, appliances, our utility bills, our water bills, our property and school taxes, the cost of medical, home, and auto insurances, and gasoline have all been affected. We see it every day in our daily lives. Inflation has devalued the dollar. It will continue to do that until the Feds get this under control.
Since I believe that it will take a few years to get inflation down, it is important to realize that the rest of 2026, 2027, 2028 or beyond will not be easy.
Add to this the fact that Saudi Arabia’s East-West pipeline was blown up and has been taken down while they try to fix it will affect the stock market on Monday. Oil prices will surge. Hopefully, you all have full tanks of gasoline before that happens.
You can take all that I have said with a grain of salt or you can prepare yourself to deal with it. Only you can help yourself which I have said many times over they years. NO ONE is coming to rescue you!
The first thing we will do is try to cut expenses where ever we can. You should too.
I will post more on how we will do this starting sometime this week. I have a busy schedule of doctor appointments this week along with getting ready for Hubby’s party.