It was a rough day for investors on Wall Street. The DOW lost more than 1,000 points at the end of the day.It was down 3 % overall.Americans are dealing with inflation and rising interest rates.The Federal Reserve has bumped the short-term interest rate by half a percent in an effort to slow inflation, which is making the stock market volatile.Joe Bert, the chairman and CEO of Certified Financial Group said, “The fed is trying to get a soft landing. They’re trying to slow things down but not cause a recession. God only knows if it’s going to work.” WESH 2 News asked him about bumping up the interest rate as a tool to slow inflation, a hike designed to discourage some spending.”When you’re paying interest, that’s less money than you have for goods and services, which draws down demand. You’ll have less to spend because you have more interest to pay,” Bert said. Bert says if you’ve been on the fence about buying a big-ticket item, something you have to borrow money for, you might want to make your move.”If you’re in the market to buy something large, that you have to finance, now’s the time to do it because interest rates are not coming down,” Bert said. Where will people feel the interest decision most?”You’ll see it in home mortgages, you’ll see it in credit cards, you’ll see it in car loans, you’ll see it in adjustable-rate mortgages, you’ll see it in credit lines,” Bert said. He says to pay off credit cards sooner than later if possible and convert adjustable-rate loans to fixed rates if you can.Bert says post-pandemic demand and supply chain interruptions helped fuel inflation.Interest rate increases are an effort to slow demand and inflation.”What’s happening is the government is trying to get dollars out of circulation to cool down the demand and cool down the economy,” Bert said.”You never want to do anything drastic. You have to recognize it’s all an economic cycle. You want to stay invested, and if it’s diversified and long term with quality, it works,” Bert said about investors. He says never to overextend yourself using credit.Bert claims living with too much debt is a bad risk and once you’ve paid interest, that cash is gone.
It was a rough day for investors on Wall Street.
The DOW lost more than 1,000 points at the end of the day.
It was down 3 % overall.
Americans are dealing with inflation and rising interest rates.
The Federal Reserve has bumped the short-term interest rate by half a percent in an effort to slow inflation, which is making the stock market volatile.
Joe Bert, the chairman and CEO of Certified Financial Group said, “The fed is trying to get a soft landing. They’re trying to slow things down but not cause a recession. God only knows if it’s going to work.”
WESH 2 News asked him about bumping up the interest rate as a tool to slow inflation, a hike designed to discourage some spending.
“When you’re paying interest, that’s less money than you have for goods and services, which draws down demand. You’ll have less to spend because you have more interest to pay,” Bert said.
Bert says if you’ve been on the fence about buying a big-ticket item, something you have to borrow money for, you might want to make your move.
“If you’re in the market to buy something large, that you have to finance, now’s the time to do it because interest rates are not coming down,” Bert said.
Where will people feel the interest decision most?
“You’ll see it in home mortgages, you’ll see it in credit cards, you’ll see it in car loans, you’ll see it in adjustable-rate mortgages, you’ll see it in credit lines,” Bert said.
He says to pay off credit cards sooner than later if possible and convert adjustable-rate loans to fixed rates if you can.
Bert says post-pandemic demand and supply chain interruptions helped fuel inflation.
Interest rate increases are an effort to slow demand and inflation.
“What’s happening is the government is trying to get dollars out of circulation to cool down the demand and cool down the economy,” Bert said.
“You never want to do anything drastic. You have to recognize it’s all an economic cycle. You want to stay invested, and if it’s diversified and long term with quality, it works,” Bert said about investors.
He says never to overextend yourself using credit.
Bert claims living with too much debt is a bad risk and once you’ve paid interest, that cash is gone.
