The Federal Reserve finally made the big announcement on Wednesday that the markets had been waiting for, and it’s not good news for those who own stocks or want to buy a house. Interest rates have been raised another 75 basis points, marking another major hike, and there’s no relief in sight.
All of this is to combat the out-of-control inflation caused by Democrat overspending.
The markets had expected the interest rates to peak and start to recede in the Fall. This move by the Fed signals that’s not happening anytime soon. That’s really bad news for many normal Americans, who are highly affected by interest rates for home ownership and market fluctuations that affect their retirements.
On a personal level, we were looking to buy another house next year. That’s off the table now because it would be a terrible financial decision to lock in a rate that will likely be over seven percent. For comparison, that means a note that would have been around $1500 this time last year is now around $2500, and interest rates will continue to rise through the end of the year.
I’m just glad we already own a nice home because those that got in at the bottom of the interest rate game over the last half-decade are in the money now. Just keep paying it off. Of course, with interest rates being so high, the housing market is going to crash for a while because this is the time to wait it out, and many people will.
Then there’s the issue of retirement and investments. The stock market is in a malaise, well off its previous high, with the DOW bouncing around between 30,000 and 31,000 points. Those who invested over the last couple of years are stuck, unable to access their money without taking a bath. In short, if you have retirement accounts, don’t bother checking them anytime soon. Things are bad right now.
And where’s Joe Biden? Who knows. I’m sure he’ll be headed to Delaware on Friday to enjoy another vacation. He doesn’t care about what’s happening because it doesn’t affect him. Meanwhile, the Fed is pushing the economy deeper into a recession to combat inflation while everyone else suffers the consequences. Welcome to Biden’s America.